Na them know. They should tax Nairaland while at it. It doesn’t concern me since I have a job and can pay for the services.

t2luv1:


can't be done how are they going to monetized it. Revenue are generated when data is sold to a third party. I don't know of any third party in Nigeria that buys harvested data from any of these service providers hence no revenue is being generated locally. Therefore nothing to tax.

Well Netflix can be taxed according to the number of Nigerian subscribers and how much profit they make providing their services in Nigeria.

Interesting point you raise about harvested data or 3rd party service providers. Facebook and twitter offer ad services on their platforms, couldn’t the revenues generated from those ads be taxed?

Buhari is laying the foundation for the Nigeria of our dreams...

Well done to the government for this...

Topmaike007:
sebi na una comot am

Me? Never!!! i can never be among such stupid crowd of southerners that will clamor for and instigate the removal of a seasoned over qualified highly intelligent academic southerner to be replaced by quota system fura de nunu people, never! They thought they were doing Kemi Adeosun but see the mumu people now, they don't know they are doing themselves. Very soon this caliphate woman will introduce tax for breathing air and tax for sleeping in your house because the useless govt want to continue living exuberantly large and wasteful lifestyle. Is it google that said their fada should not develop Nigeria with the oil money they have been making since 1958? Look at the UAE, same oil we are selling, but their country is like a paradise for their citizens. Countries that were literally formed from deserts.

kikero:


Fiscal federalisim =higher taxes in most instances.

And not just for Northerners. Everyone, except South Southerners , pays higher taxes in a 'fiscal federalism' situation....

(A lot of Southerners think that it means the South gets more oil money. In reality, under true fiscal federalism, only oil producing states get more oil money, everyone gets less.).

What Nigeria needs is to remove subsides, and price controls, so that we can attract investors into our industrial sector. Once every part can stand on its own, and produce industrial goods for the whole world...then we can chat about fiscal federalism.

You are wrong bro, Nigeria as a nation is blessed with many valuable mineral resources in each state not to talk of region. Fiscal federalism is more about just oil infact there will be drastic change in power supply because each region will find all the possible means to woo investor, human capital development will skyrocket in each region and the competition for greatness by region will start. Example is regional policing,hope u can see how other regions are responding to their own security network. Those rougues in NASS will be totally scrapped, hope u knw they are on the verge of getting over 20 billion naira to renovate the NASS complex at this time recession is smiling at us. Fiscal federalism will atleast stop all these madness.

Venerable612:


You should understand the word consumer there means someone who pays for the services.

I was simply using the numenclature used by the person I was quoted.

You can’t watch Netflix in Nigeria without paying for it... and there is no way you would pay for Using Google unless you pay for using their ads services. The same applies with YouTube.

Consumers here mean those who pay and contribute the revenues generated.

You are right about this being a good decision - if properly implemented.

they should not be operating in Nigeria for free.

FG should even regulate their prices a little. if not for useless leaders, companies will be dying to do business in a country with over 200m people

fabuloz1:

Read and comprehend you will say No!
who is taxing you? you don't have digital company with atleast 25 million to be taxed. What they mean is that all these digital companies will be taxed from the money they are generating from Nigerians

Netflix and co pass the tax to you end user

FG will soon tax Nairaland

Omooba77:


What if #25m is their operational cost, will they pay tax on that. Are taxes not paid or profit?

It’s simple brother.

The 25 million is one of the consideration for the determination of Significant Economic Presence and if they will be taxed at all!

what would be taxed is the Profits or Income made from the Revenue generated in Nigeria.

Moreover, I don’t understand why the government should be concerned by operational costs when they don’t have a physical cite in Nigeria. Any such operational cost will be negligible In any case.

Please read the article again.

seunmsg:


Is the new law made to tax your data or tax the companies making money from Nigeria? If Nairaland is paying taxes in Nigeria, why should Facebook, Netflix, Twitter etc not pay taxes from the revenue made in Nigeria?

Are these companies paying taxes in Europe or not? So, why should they not pay taxes in Nigeria despite generating income from the country?

Will the next government not benefit from the tax reforms that the current government is carrying out? Must you guys criticize everything?

See, this new law is long overdue. It should have been in place a long time ago.

I think you have access to FG, please tell FG to stop stealing 50naira on every deposit on our savings bank account. These tax is becoming excessive & if proper care is not taken, they will find other useless things to tax us on. Imagine saying we'll pay tax for using Whatsapp, it's in the news & on the internet. Facebook can suspend her services from Nigeria & I can tell you it's Nigeria business owners that will suffer

Omooba77:


Netflix and co pass the tax to you end user

That's what the likes of seunmsg failed to comprehend

If I tell you how much have lost to FG between the month of April till now all in the name of stamp duty, it's enough to purchase landed property yet I couldn't feel any impact of tax.

Lostz:


they cannot pull their services from Nigeria because we are useful to them

we are not using them for free. they sell our Data, they use our datas to run targeted ads.

they can take their services elsewhere. they won't be here if they are not making money.

how much ads do you run? smh! the money they are making from the whole of Nigeria cannot even reach the money they are making from New York alone. Even Kenya has more value to them than this country. How long did they take to even accept to open their services to this country? You just started using Netflix in 2019. Chase them with your stupid laws, and they will be even eager to carry their bags and go. They will put your country IP on permanent ban, then after you spent another 40 years in social media wilderness, your useless govt will still spend billions of tax payers money to be globe trotting and begging them to come back. The choice is yours. You have no bargaining chips on this negotiation table. If France is talking, Nigeria should sit down in one corner and shut up

dongodav:
Bro, no finish this guy abeg. You people are funny in this NL. I like reading the comments than the main story.

lol na my gee

yinchar:
Nigerians!!!

This is the new norm, every country is doing it now. You can’t be making money from a country and not pay tax!

Every foreign purchase from eBay or Amazon is subjected to online tax, which mean you paying tax to that country, because it’s a law.

Same thing should apply in Nigeria as well, online companies irrespective of where they are based or located should pay tax for income originating from Nigeria.

Guy you're funny oh, you think Twitter, Facebook, Amazon or alibaba would pay tax to your government ���. it is online purchase anywhere in the world, the highest it would be on you or the company trading with these services that's bringing it to your door steps.

anigbajumo:


You are wrong bro, Nigeria as a nation is blessed with many valuable mineral resources in each state not to talk of region. Fiscal federalism is more about just oil infact there will be drastic change in power supply because each region will find all the possible means to woo investor, human capital development will skyrocket in each region and the competition for greatness by region will start. Example is regional policing,hope u can see how other regions are responding to their own security network. Those rougues in NASS will be totally scrapped, hope u knw they are on the verge of getting over 20 billion naira to renovate the NASS complex at this time recession is smiling at us. Fiscal federalism will atleast stop all these madness.

It still means higher taxes.

The fact is, when I hear the 'we have lots of natural resources' I just laugh. The truth is, the prices of these resources are 1) not controlled by us 2) fluctuate like oil prices.Also, it is going to take years to regulate the mining of all these resources...especially as most of it is illegaly mined. And don't mention agriculture. Less than 10% of our agriculture is mechanized, plus we don't have the guaranteed markets we had in the 1960's and 70's anymore...we have to compete with all sorts of other countries.

As for power supply, the truth is, many Nigerians don't pay for the power they use, and many of them won't pay under fiscal federalism (We privatised power in 2014...and since then all the DISCOS are running at a loss because in many aprts of the country...50% of the populace don't pay.).

Our police can't work well, because they don't get enough cash to do so.(We spend $2 billion dollars to fund the police force that is supposed to police 200million people, the UK spends ten times that to police 60million people). And regional police is an invitation to anarchy.(the pogroms of 1966 were made easier by a regionalised police force.There is a reason why the Police force is federal).

And finally scrapping the National assembly does not mean corruption ends...especially as the regional assemblies would be corrupt too (state aseemblies have the same issue).

Let's become an industrial nation first. It is sad that this APC government is not serious about that. THEN...we can talk about fiscal federalism. We are not rich enough to get to fiscal federalism.

SeverusSnape:

Anyone who speaks up against bubu the mumu dullard is igbo. Zombie mentality.

you dey deny your tribe ne

.. The most painful thi g is that those complaining will still be the champion of voting for the same govt... I don't pity Nigerians cuz all its youths are stupid ND deserve harsh treatment..

Wetin concern me.. Philippine is the very enjoyable

I'm shocked these companies have existed in Nigeria for long and are not paying tax, like really ? So all their profits are untaxed? What a country.

Better late than never though.

By the time trump big hammer hit Nigeria we go think say na trailer jamb us

yinchar:
Nigerians!!!

This is the new norm, every country is doing it now. You can’t be making money from a country and not pay tax!

Every foreign purchase from eBay or Amazon is subjected to online tax, which mean you paying tax to that country, because it’s a law.

Same thing should apply in Nigeria as well, online companies irrespective of where they are based or located should pay tax for income originating from Nigeria.

What you failed to realize is that these firm passed the tax on innocent Nigerians after we've paid many tax e.g 7.5VAT on everything including data you use to browse these websites, 50naira stamp duty on every deposit on your bank account including savings account

Check the inage below to understand you don't really understand what you are saying, the image below shows eBay order whereby USA government charges tax but paid by consumer, same applies to when government stated to charge all these useless tax, Facebook, Netflix & the likes will ask you to pay tax. I use gotv & every subscription now comes with tax which is paid by the subscribers.

So tell me, who's paying these taxes at the end of the day other than immocent Nigerians?

If you have gotv or dstv at home, try and subscribe & see you will be taxed

Cc seunmsg

Ose!! Chairman of the stamp duty payer association of Nigeria.

You must have transacted over 3000 times (April to June) to buy a land of 150k in a village

Salute Baba

yesloaded:

That's what the likes of seunmsg failed to comprehend

If I tell you how much have lost to FG between the month of April till now all in the name of stamp duty, it's enough to purchase landed property yet I couldn't feel any impact of tax.

pansophist:
I'm shocked these companies have existed in Nigeria for long and are not paying tax, like really ? So all their profits are untaxed? What a country.

Better late than never though.

Na Nigerians go still pay these tax

If you have gotv or dstv at home then you will understand what am saying

www.nairaland.com/attachments/11685015_1758727_jpegb5aef8414bca9d9b832ab3f69950d8e5

Openbusiness:

how much ads do you run? smh! the money they are making from the whole of Nigeria cannot even reach the money they are making from New York alone. Even Kenya has more value to them than this country. How long did they take to even accept to open their services to this country? You just started using Netflix in 2019. Chase them with your stupid laws, and they will be even eager to carry their bags and go. They will put your country IP on permanent ban, then after you spent another 40 years in social media wilderness, your useless govt will still spend billions of tax payers money to be globe trotting and begging them to come back. The choice is yours. You have no bargaining chips on this negotiation table. If France is talking, Nigeria should sit down in one corner and shut up

you mean we have not been surviving without them?

you forgot the part that said company that make above ₦25m. there are Nigerians that don't even make ₦1m profit from their business yearly but still pay tax.


they will not come to Nigeria if they can't make profit. I don't think there is any country with higher buying power than Nigeria in Africa

Tunar18:
Ose!! Chairman of the stamp duty payer association of Nigeria.

You must have transacted over 3000 times (April to June) to buy a land of 150k in a village

Salute Baba

Some have lost over 500k

If you do business that requires moving of money into your account then you will understand what am saying

Ask any eccurency exchanger around you the numbers of credit & debit transactions they have each day. In a day you can have over 100 transactions!

Use your head

Check below image, USA govt imposed tax on ebay purchase but it's customer that ended up paying the tax

Gotv & dstv subscription should tells you who's paying the tax imposed on the company by FG

The paid underlings are here to spout nonsense as usual. All because of N30k a month.

Check out how this one equated Tax on Facebook (which does not sell any goods/services with tax on Amazon(which does)

One thing is certain, none of you will be able to escape the economic tsunami that is coming from Buhari borrowing more money than ALL the governments before him combined.

You MUST reap what you sowed

yinchar:
Nigerians!!!

This is the new norm, every country is doing it now. You can’t be making money from a country and not pay tax!

Every foreign purchase from eBay or Amazon is subjected to online tax, which mean you paying tax to that country, because it’s a law.

Same thing should apply in Nigeria as well, online companies irrespective of where they are based or located should pay tax for income originating from Nigeria.

yesloaded:

Na Nigerians go still pay these tax

If you have gotv or dstv at home then you will understand what am saying

is that the reason they should pay zero tax?

kingawothefirst:
I’m surprised these MNCs are not being taxed already, the FG need to get their acts together. The main challenge like they said is how to get these companies to comply.

seriously, I am very surprised that all these mentioned companies are not taxed.... Whereas They make billions from ads in this country

Omooba77:


What if #25m is their operational cost, will they pay tax on that. Are taxes not paid or profit?

You really need to stop, bro. Your argument is really laughable and becoming embarrassing.

Later you will tax plants and animals, still nothing to show.

Lostz:


is that the reason they should pay zero tax?

You don't get it!

Are Nigerians not paying enough tax before?

Why killing us with heavy tax with nothing to show for it?

Because they must pay tax then we kill Nigerians with tax?

The thing we need to get here is for whatever is beng taxed,the tax is being transferred to the end user;the consumer.It is being factored into the pricing regime.