In a significant fiscal development, major international technology companies, including Google, Facebook, Netflix, and others, have paid N3.85 trillion in taxes to the Nigerian Federal Government during the first nine months of 2024.

Tax Collection Highlights:

- 68.12% increase from N2.29 trillion in the same period of 2023

- Comprises Company Income Tax (CIT) and Value Added Tax (VAT)

- Quarterly progression shows consistent growth in tax revenues

Detailed Tax Breakdown:

1. Company Income Tax (CIT)

   - Total collection: N2.57 trillion

   - 43.65% increase from N1.789 trillion in 2023

   - Quarterly progression:

     * Q1: N598.13 billion

     * Q2: N1.12 trillion

     * Q3: N852.29 billion

2. Value Added Tax (VAT)

   - Total collection: N1.28 trillion

   - Remarkable 157.03% surge from N498.34 billion in 2023

   - Quarterly progression:

     * Q1: N435.73 billion

     * Q2: N395.74 billion

     * Q3: N448.85 billion

Regulatory Context:

- CIT: 30% tax on company profits

- VAT: 7.5% consumption tax

- Government initiated tax collection from digital service providers in 2020

Targeted Digital Service Providers:

- Video streaming platforms

- Social media sites

- Digital content download services

- Companies like Netflix, Facebook, Twitter, Alibaba, and Amazon

Compliance Status:

- Google, LinkedIn, and Meta have met tax compliance requirements

- TikTok and X (formerly Twitter) are yet to comply with tax filing regulations

The significant increase in tax collection reflects the Nigerian government's enhanced efforts to capture revenue from digital service providers operating in the country, even without physical offices.

Experts anticipate further revenue growth as more social platforms begin remitting their statutory tax obligations.