The Federal Inland Revenue Service (FIRS) has clarified that it has no intentions of imposing taxes on online content creators.
A report from the News Agency of Nigeria (NAN), based on discussions with FIRS staff, highlighted that skit makers are individuals who are not subject to taxation under the FIRS.
- He stated, “FIRS does not tax Personal Income Tax, States governments do.”
- “FIRS collects Company Income Tax. Only those who are corporate names and earn profit of N25 million and more are required to pay tax.”
In the past few weeks, there were multiple reports the FIRS planning to tax online content creators popularly called skit makers as part of efforts to boost government revenues.
New framework for tax administration
In another developments, the FIRS introduced a new framework aimed at enhancing the nation’s tax administration.
Dr. Zacch Adedeji, the Executive Chairman of the FIRS, stated that the structure reflects efforts to adopt a more effective and modern approach to tax administration.
- According to him, “This approach positions FIRS at the forefront of innovation, ensuring that we meet the evolving needs of our taxpayers in a rapidly changing world.
- “The structure advocates a comprehensive approach to taxpayer services, consolidating our core functions and support under one umbrella.
- “By tailoring our services to specific taxpayer segments, we aim to simplify the taxpayer experience.
- “No more complexities, no more overlaps, just a seamless and user-friendly interaction for every taxpayer,’’
What you should know
- The federal government is planning ways to increase revenue through the FIRS. In August President Tinubu inaugurated the Presidential Fiscal Policy and Tax Committee headed by former Fiscal Policy and Tax leader at PwC Mr. Taiwo Oyedele.
- The goal according to the President is to sanitise the fiscal policy space and reduce taxes from around 70 to 10 and block loopholes.
- The federal government hopes to achieve a tax-to-GDP ratio of 18% in the next three years from its current 10%. (Nairametrics)