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Nigeria Shunned OECD-Backed Tax Agreement On Revenue Concern (1)

May 24, 2022, 12:01 PM

Nigeria did not join an international tax agreement brokered by the Organization for Economic Cooperation and Development because it would result in revenue losses to Africa’s biggest economy.

The requirement that signatories could only tax digital sales of multinational companies with annual global turnover of 20 billion euros ($21.4 billion) and a global profitability of 10% was of a “concern,” because most firms “that operate in our country do not meet such criteria,” Muhammad Nami, executive chairman for the Federal Inland Revenue Service, said in emailed statement. “This rule will take-off so many multinational enterprises from the scope of those ...