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Nigeria Introduces Tax on Foreign Digital-Services Companies

Jan. 6, 2022, 8:56 AM

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 ...