2023 Presidency: Tinubu holds meeting with 17 APC governors hours after Osinbajo’s declaration

Bola Ahmed Tinubu has met with Governors on the platform of the APC as part of his consultation towards his ...

Nigerians react to Osinbajo’s declaration, ask Ambode to re-contest Lagos gubernatorial seat

April 11, 2022

Reacting to Osinbajo's declaration to join the 2023 presidential race, some Nigerians are calling on Ambode to re-contest for the ...

six ways to resolve shortfalls in power sector

Yemi Osinbajo declares intention to run for President

by William Ukpe

April 11, 2022

Vice President Yemi Osinbajo has officially declared his intention to join the race for the seat of the President ahead ...

Crude oil theft: We must move past discussions to action - Prof Osinbajo

Osinbajo urges MDAs to ensure implementation of reforms on the ease of doing business

by Justina Mboho

March 15, 2022

There are 58 reforms for implementation under NAP 7.0 that will run from 7th February to 7th April 2022.

FG Directs MDAs To Cut Costs On 2016 Budget

Export: Too much regulatory requirements killing business output- Osinbajo

by William Ukpe

February 2, 2022

The Federal Government warned that too much regulatory requirement hurts Nigeria’s export potential and has called for a rehabilitation of ...

NEC launches Ease of Doing Business report

FG says 4 million MSMEs have benefitted from N150 billion grant schemes

by William Ukpe

January 25, 2022

The Vice President also revealed that up to 57 per cent of the MSMEs were owned by Nigerians below 35 ...

FG foreign reserves Nigeria Yemi-Osinbajo, FG negotiates with Governors on bail-out fund, as NEC approves 100 billion for NLTP, bail-out fund States Governors, FG earns N28.6 trillion from VAT, others , Ease of doing Business: States must partner with Federal Government – Osinbajo , AfCFTA: Nigeria’s financial footprints to be extended across Africa – Osinbajo , FG seeks partnership with National Council of Registered Insurance Brokers, here’s why , Osinbajo says FG’s investment to take advantage of Africa’s $200bn tourism potential is massive, Pres. Buhari’s plan to tax US tech companies might provoke US trade war https://www.yemiosinbajo.ng/vps-lecture-at-the-national-defence-college-course-28-lecture-event/ https://punchng.com/digital-firms-to-pay-tax-under-new-finance-act-osinbajo-2/ https://www.nytimes.com/2020/01/31/business/economy/digital-tax-oecd.html Nigeria at risk of trade war with United States as the Nigerian Government says it will impose taxes on technology companies like Facebook, Google, and other digital companies that have been escaping tax payment in Nigeria due to their lack of presence within the country. The US has threatened tariffs on imports from countries that impose such digital taxes. The tech companies with heavy revenue footprint in Nigeria now have their backs against the wall because President Muhammadu Buhari-led administration want to tax them to grow Nigeria’s revenue; which has led to the development of the Finance Act. The Finance Act is the solution of President Buhari to the revenue problem which the Finance Minister, Ahmad Zainab, said Nigeria has. The Nigerian government is looking to grow its revenue through taxes, and one of such is the digital tax which Vice President, Yemi Osinbajo, said will commence despite the threat of the US which is aimed at protecting the silicon companies. No more back door operation: Facebook, Google, Amazon, YouTube and many more digital businesses have a sizeable market in Nigeria, but don’t have a physical structure for their operations; this has cost Nigeria tax revenue. These companies are known to prefer situating their companies in tax havens where taxes are low compared to other African and European countries. Ireland and Bermuda are some of the tax havens for these multinational companies. But according to Osinbajo, the period of making gains from their operation in Nigeria without paying tax is over. Osinbajo, while speaking at The National Defence College, Course 28 Lecture Event, said that, “Let me also briefly mention the new provisions on Taxation of Digital Economy and Non-Resident Companies. This is a very important aspect of our taxation policy. Before the Finance Act, only companies that had a physical presence or a fixed base in Nigeria could be taxed. “So, most digital companies, I mean any of the big technology companies, or multi-national digital companies, that did not have physical offices in Nigeria, made significant income from Nigeria from online activities, such as advertising, movie streaming, online gaming and e-commerce from subscribers in Nigeria, but paid no taxes whatsoever because they did not have a physical base in Nigeria. So now we are no longer relying on the fixed base or physical address criterion.” He added that, “Under the Finance Act, once you have a Significant Economic Presence (SEP) in Nigeria, you are liable to tax. Whether you are a resident here or you are not resident as a company, as long as your economic presence is significant, you are liable to tax. If you are streaming online, advertising using Google adverts, whether you are resident here or not, you are now subject to tax. “So, non-residents who previously had no fixed base and no Nigerian tax liability will now be liable to tax based on the SEP criterion. The Minister of Finance is empowered to issue a regulation defining what Significant Economic Presence means. So, she just defines the scope of what we will be looking out for in terms of Significant Economic Presence.” Osinbajo explained. Nigeria is not alone in this crusade: Nigeria is not the only country trying to tax these technology companies. The European Union have also been coming after them for taxes. The EU is also stating that if the technology companies are making economic gains through their operation despite the lack of physical presence in several European countries, then the tech conglomerates should be taxed. This has led to review of tax laws by the EU. According to a report by New York Times, new rules to tax these multinational companies are being discussed by about 130 countries through the Organization for Economic Cooperation and Development. The review has become necessary as digital economy begins to open new revenue sources. Should Nigeria tread carefully? The United States has threated to hit any country imposing taxes on the technology companies - which are mostly American – with tariffs on import. This put Nigeria at a rather impossible position, as the country is not economically strong enough to enter a trade war or go on a tit for tat battle with the US. According to Q3 report, the US is the fifth biggest export destination for Nigeria, having imported N322.2 billion (6.28%) goods from Nigeria, with crude oil constituting N329.8 billion. Although, the US is behind Ghana, India, Netherlands and Spain, it doesn’t change the significance of the US market to the Nigerian economy. Meanwhile, Nigeria’s top import sources include the U.S, accounting for N747 billion in H1 2019. Franch had moved to tax the online businesses but have now delayed the plan this year after a meeting with the US; the US has also paused its tariff threat against France. Britain is also one of the digital tax drivers. With such threat hanging over the digital tax, it’s unlikely Nigeria will go ahead taxing these technology companies, as US feels such tax is discriminatory against US firms, and have suggested these companies be allowed to decide if they want to operate with the new tax standards., FG will provide succor for daily wage earners as lockdown continues – Osinbajo

Osinbajo says FG plans to inject 10 million gas cylinders in 12 states

by William Ukpe

November 23, 2021

Vice President Yemi Osinbajo has revealed that the Federal Government will donate 10 million LPG cylinders in a year through ...

#EndSARS: NEC to review implementation strategy for reports of Judicial Panels - Osinbajo

25 million Nigerians to be lifted out of poverty by 2025 – Osinbajo

by William Ukpe

November 17, 2021

Vice President Yemi Osinbajo stated that Nigeria’s projected real GDP growth from 2021 will make sure 10 million more Nigerians ...

Ekiti has a friendly business environment but must act like a nation – Osinbajo

by Abiola Odutola

October 14, 2021

Ekiti State is one state in the country with a friendly business environment, aiding smooth production for the Small and ...

Economic Sustainability Plan creating jobs for social housing – Vice President

Osinbajo did not call for naira devaluation – Office of the VP

by William Ukpe

October 13, 2021

The Office of the Vice President has clarified Prof Yemi Osinbajo’s latest comments on monetary policy at the Mid-Term Ministerial ...

Tag: Yemi Osinbajo