Nigeria Introduces Tax on Foreign Digital-Services Companies

Non-resident companies providing digital services in Nigeria will be required to pay 6% tax on turnover starting this year, according to Finance Minister Zainab Ahmed’s presentation on the budget office’s website.

• Services to be taxed include various apps, electronic-data storage, online advertising
• Digital-services tax is one of the measures government is introducing to help boost public revenue amid “emerging fiscal constraints and challenges”
• Government faces 2022 budget deficit of 6.39 trillion naira or 3.46% of GDP; plans to fill gap with domestic and external borrowing of 2.57 trillion naira each, multi-lateral and bi-lateral loans of 1.16 trillion naira, privatization proceeds ...