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Google and other foreign digital companies operating in Nigeria have paid over N1.98 trillion in taxes to the Federal Government in the past 15 months.
Fndings by The PUNCH in an analysed data from the National Bureau of Statistics made this known.
The figure includes both company income tax and value-added tax.
The Federal Inland Revenue Service (FIRS) said that company income tax is a 30% tax imposed on the profit of companies, while value-added tax is a 7.5% consumption tax paid when goods are purchased and services rendered.
Foreign digital companies tax payment are in line with the Federal Government's decision to tax foreign digital service providers offering services to Nigerians and earning revenue in naira.
The government issued the Companies Income Tax (Significant Economic Presence) Order, 2020, which mandated foreign companies with sustained interactions with persons in Nigeria and customising their digital platforms to target persons in Nigeria by stating the prices of their products or services in naira to pay taxes.
The order also stated that the finance minister may, by order, determine what constitutes a significant economic presence in Nigeria.
Some of the foreign digital companies that have paid taxes to Nigeria include Google, Netflix, Facebook, Twitter, Alibaba, and Amazon.
The FIRS said that the taxes paid by these companies will be used to fund important projects, such as infrastructure development and education.
The collection of taxes from foreign digital companies is a sign that the Nigerian government is taking its digital economy seriously.
The government is committed to creating a level playing field for all businesses, both domestic and foreign.
