The figure includes both Company Income Tax and Value Added Tax, and is based on data from the National Bureau of Statistics.

According to the Federal Inland Revenue Service, CIT is a 30 per cent tax imposed on the profit of companies, and VAT is a 7.5 per cent consumption tax paid when goods are purchased, and services rendered and borne by the final consumer.

Earlier in 2020, it was reported that the Federal Government planned to tax foreign digital service providers offering services to Nigerians and earning revenue in naira.

Some of these service providers, which are video streaming sites, social media platforms, and companies that offer downloads of digital content are expected to pay digital tax to the Federal Inland Revenue Service.

The former Minister of Finance, Zainab Ahmed, had issued the Companies Income Tax (Significant Economic Presence) Order, 2020 as an amendment of the Finance Act 2019.

The order aimed to impose a tax on a foreign entity with respect to certain services or digital transactions if it had a Significant Economic Presence in Nigeria.

It further stated that the finance minister might, by order, determine what constitutes SEP in Nigeria.

Netflix, Facebook, Twitter, among others, are some of these foreign companies that offer digital video and advertising services to Nigerians.

Others, like Alibaba and Amazon, generate revenue from Nigeria by processing and transmitting data collected about users in Nigeria, provision of goods or services directly or through a digital platform, or offering intermediate services that link suppliers and customers in Nigeria.

The new regulation would apply to companies with income of N25m or equivalent in other currencies from Nigeria in a year and those with a Nigerian domain name (.ng) or a website address in the country.

The SEP order mandated foreign companies with sustained interactions with persons in Nigeria and customising their digital platforms to target persons in Nigeria by stating the prices of their products or services in naira to pay taxes.

According to the Act, a foreign entity providing technical services such as training, advertising, supply of personnel, professional, management, or consultancy services shall have a SEP in Nigeria in any accounting year if it earns any income or receives any payment from a person resident in Nigeria or a fixed base or agent of a foreign entity in Nigeria.

However, payments made to employees of a foreign entity or for teaching in an educational institution are exempt.

Also, in January 2022, the Federal Government disclosed that it would charge offshore companies providing digital services to local customers in Nigeria a six per cent tax on turnover as provided in the 2021 Finance Act.

Speaking further on the tax on digital services, the former finance minister, Ahmed, explained that it includes apps, high-frequency trading, electronic data storage, and online advertising, adding that “this is introducing turnover tax on a fair and reasonable basis.”

The policy was contained in Section 30 of the Finance Act, which amended the provisions of Sections 10, 31, and 14 on VAT obligations for non-resident digital companies.

Ahmed said, “Section 30 of the Finance Act designed to amend sections 10, 31 and 14 of VAT is in relations to VAT obligations for non-resident digital companies and the mechanism that will be used is to restrict VAT obligations mainly to digital non-resident companies who supply individuals in Nigeria who can’t themselves self-account for VAT.

“So if you visit Amazon, we are expecting Amazon to add VAT charge to whatever transaction you are paying for. I am using Amazon as an example. We are going to be working with Amazon to be registered as a tax agent for FIRS.

“So Amazon will now collect this payment and remit to FIRS and this is in line with global best practices, we have been missing out on this stream of revenue.”

According to her, the new law applies to foreign companies that provide digital services such as apps, high-frequency trading, electronic data storage, online and advertising, among others.

She noted that in line with Section 4 of the Finance Act, non-resident companies are now expected to pay tax at six per cent on their turnover.

The minister, who stated that the government was desirous of modernising taxes for its digital economy and to improve compliance, noted that digital non-resident companies do not need to be registered locally but would have an arrangement with the FIRS to collect and remit taxes in a bid to reduce the compliance burden.

Analysts at PricewaterhouseCoopers had said earlier that some of the affected foreign digital companies would be required to register for income taxes in Nigeria and file annual tax returns even if they did not have a physical presence in Nigeria.

They added that Nigerian resident businesses (as well as the fixed bases of non-resident companies) that have transactions with the affected non-resident companies would also be required to account for withholding tax on some of the payments made to these foreign companies.

PwC raised concerns as to how the FIRS would enforce compliance without international consensus, as a number of the companies affected might be outside the territorial reach of the agency.

According to the consulting firm, the problem will also be exacerbated where the companies sell their products and services directly to individual consumers in Nigeria.

However, findings by the PUNCH showed that these firms have paid over N1.98tn in taxes between the first quarter of 2022 and Q1 2023.

A breakdown on CIT showed that Nigeria earned N342.4bn in Q1 2022, N80.39bn in Q2 2022, N327.02bn in Q3 2022, N399.98bn in Q4 2022, and N168.23bn in Q1 2023.

On a year-on-year analysis, there was a decline of 50.87 per cent (-N174.17bn) in CIT from foreign firms.

On a quarterly basis, the decline was a bit higher at 57.94 per cent (-N231.75bn).

A breakdown on VAT showed that Nigeria earned N117.99bn in Q1 2022, N11.13bn in Q2 2022, N121.85bn in Q3 2022, N159.83bn in Q4 2022, and N151.13bn in Q1 2023.

On a year-on-year analysis, there was an increase of 28.09 per cent (N33.14bn) in CIT from foreign firms.

However, on a quarterly basis, there was a decline of 5.44 per cent (-N8.7bn).

The post FG makes N2tn taxes from Google, Facebook, foreign firms – Report appeared first on New Mail Nigeria.

Balogun was suspended on Friday for issuing an unauthorised letter mandating content producers to pay a 5 percent levy.

In a statement shared on Twitter, Gbenga Omotoso, the state’s commissioner for information and strategy, said there is no levy on audio and visual contents of all physical and digital platforms.

“The Executive Secretary, Lagos State Film and Video Censors Board, Bamidele Balogun, is said to have announced a 5% levy. The Government hereby dissociates itself from the said announcement in the media.

“The fifth pillar of the T.H.E.M.E.S Agenda, the development policy of this Administration, is Entertainment and Tourism. Practitioners are partners in our effort to ensure that Lagos State remains Africa’s leader in entertainment.

“The Executive Secretary, who was not authorised to make such an announcement, has been suspended, pending an administrative enquiry.

“The Governor Babajide Sanwo-Olu Administration is not insensitive to the fact that the industry has been badly hit by the effects of the COVID -19 pandemic and empathises with this and other sectors of the economy.”

The levy would have affected content producers, distributors and video streaming platforms like Netflix and IrokoTV.

Some content producers had earlier raised an alarm about an impending levy and received a court injunction from the federal high court.

Chuka Obiozor, a justice of the federal high court, had ruled that the LFVCB cannot impose levies in addition to those imposed by the National Film and Video Censors Board as it would amount to double taxation.

The post Lagos suspends director for imposing 5% levy on Netflix, IrokoTV appeared first on New Mail Nigeria.

In a statement issued in Abuja on Friday, the Minister of Information and Culture, Alhaji Lai Mohammed, said the partnership, for on-screen adaptation of Wole Soyinka’s ‘Death and The King’s Horseman’ and Lola Shoneyin’s ‘The Secret Lives of Baba Segi’s Wives’, adds another feather to Mo Abudu’s already well-adorned creative cap.

The Minister also described the deal as a big boost for the country’s Creative Industry, at a time the industry is reeling from the negative effects of the Covid-19 pandemic.

“Coming after Netflix’s first Nigeria original film, Lionheart, this is a great recognition of the immense creative talents that abound in Nigeria and the provision of a global platform for Nigeria storytelling,” he said.

Alhaji Mohammed expressed the hope that this partnership will signal the beginning of a bigger, mutually-beneficial working relationship between the streaming service and Nigeria’s Creatives.

The post FG congratulates Mo Abudu over Netflix deal appeared first on New Mail Nigeria.

Initially rejected by cinemas, this criminally underseen movie was finally accepted in December 2018. Unfortunately, the showtimes were unfair and higher budget blockbusters overshadowed it. This is the first time the film will be available to viewers worldwide.

Kasala!, set in a Lagos slum, follows Tunji, a fast-talking teenager, and his friends Chikodi, Abraham, and Effiong as they go on a joyride around their neighborhood in his uncle’s car.

Kasala bursts when they crash the car and must fix it within five hours before Tunji’s strict uncle gets back from work. To raise the money for the car repair, they resort to avenues known to each one of them.

The film is led by the talented quartet of Chimezie Imo, Emeka Nwagbaraocha, Tomiwa Tegbe, and Mike Afolarin, who deliver a rapturous performance praised by most critics.

Writing for Africa is a Country, Fareeda Abdulkareem says they are “a good ensemble”. YNaija’s Wilfred Okichie says: “Kasala’s biggest triumph has to be the casting of the central foursome. The chemistry that oozes out of their gathering is pure gold; and Edosio is ever-present, capturing moments that feel so real and true to life.”

Other critics praised Kasala! for embracing Lagos’ dirt and roughness while presenting it in a non-exploitative manner. “It is a realistic and gritty film, one that does not shy away from the grime and the stench,” Toni Kan wrote for The Cable.

“The ghetto is up-front and centre in all its tainted glory. But far from being an exploitative film which milks the deprivation of the poor for quick gains; the film actually has a heart and a soul”, he continued. “It is a love song to Lagos and the denizens of the ghettos that dot the city.”

Kasala! is shot and directed by Edosio from a screenplay by Temi Sodipo. The film stars Judith Audu, Gabriel Afolayan, Jide Kosoko, Sambasa Nzeribe, and Kassim Abiodun. Kasala! started playing on Netflix from January 31, 2020.

The film is a fulfilment of Edosio long term dream of shooting films that tell of the authentic lives of Nigerians. Kasala has did well internationally and in the festival circuits winning loads of awards across the world.

Check out the trailer below:

The post Ema Edosio’s Kasali gets on Netflix appeared first on New Mail Nigeria.

Afolayan disclosed this in an interview with the News Agency of Nigeria on Wednesday on the sideline of the French-Nigerian Cinema Days holding from July 2-3 at the Alliance Francaise, Ikoyi, Lagos.

“I wish to inform you that Netflix has acquired “Mokalik” and some other of my films,” he said.

However, Afolayan did not disclose the value paid for the acquisition. He added that the company has not announced when the films would be released on the platform.

The acquisition represents Netflix’s ongoing aggressive interest in Africa content.

The company had reportedly signalled that it planned to get serious about ordering/acquiring original series and films from the African continent, created by Africans.

At the Toronto International Film Festival, the streamer acquired Nigerian drama “Lion heart,” the directorial debut of Nollywood veteran actress Genevieve Nnaji.

It was also picked as a Netflix Original movie and was released worldwide on January 4, 2019.

NAN reports that ‘Mokalik’ features singer Simisola Ogunleye, a.k.a Simi, in her debut acting role and Big Brother Naija ex-housemate, Tobi Bakre among other actors.

Mokalik’s plot follows the story of an 11-year-old boy, Jaiye, from the middle-class suburbs, who decides to find his path in life as an apprentice at a mechanic workshop.

When his father arrives to take him home, Jaiye has to make up his mind if he wants to return to school or take on his apprenticeship full time.

The post Netflix acquires Kunle Afolayan’s ‘Mokalik’, others appeared first on New Mail Nigeria.

The media company, which is available in 190 countries including Nigeria, has about 137 million subscribers globally.

Speaking at Content London conference, Erik Barmack, Netflix’s vice president of international originals, said the company is “in the process of looking at opportunities in Africa,” according to Quartz Africa.

Barmack added that Netflix will “definitely” commission series from Africa in 2019 and predicted that within the coming years, half of the 10 most-watched shows will come from outside the US.

This move would place Netflix, in competition with cable giant, Multichoice and Nigerian streaming services including Jason Njoku’s Iroko TV.

Meanwhile, in September, Netflix introduced its benchmark eight billion dollars original production budget in Nollywood with the worldwide rights purchase of Genevieve Nnaji’s directorial debut, ‘Lion Heart’.

The comedy is the company’s first original film from Nigeria and stars industry veterans including Nkem Owoh, Pete Edochie and Onyeka Onwenu.

Netflix has previously licensed Nollywood flicks including romantic comedy ‘The Wedding Party’ as well as crime thriller, ‘October 1′ but only after both had been screened in local cinemas.

The post America’s Netflix to invest in original African content appeared first on New Mail Nigeria.

The former first couple have launched Higher Ground Productions to produce a variety of content for the video streamer, possibly including scripted series, documentaries and features.

“One of the simple joys of our time in public service was getting to meet so many fascinating people from all walks of life, and to help them share their experiences with a wider audience,” Obama, who served two terms in the White House from 2009, said in a statement.

“That’s why Michelle and I are so excited to partner with Netflix. We hope to cultivate and curate the talented, inspiring, creative voices who are able to promote greater empathy and understanding between peoples, and help them share their stories with the entire world.”

The Obamas already have a large social media presence — a combined 150 million followers on Twitter and Instagram — but the deal will see their influence boosted significantly by Netflix’s 125 million subscribers in 190 countries.

“Barack and Michelle Obama are among the world’s most respected and highly-recognized public figures and are uniquely positioned to discover and highlight stories of people who make a difference in their communities and strive to change the world for the better,” said Netflix chief content officer Ted Sarandos.

The statement didn’t discuss money, but their time in the White House has already begun to reap lucrative dividends for the Obamas, who negotiated book deals last year reportedly worth more than $60 million.

A much-awaited memoir by Michelle Obama is due to be released on November 13, publisher Penguin Random House said in February, describing her as “one of the most iconic and compelling women of our era.”

The Obamas met while he was an intern and she his adviser at a Chicago law firm, and they were soon married. She became his closest confidante during his political rise.

Michelle used her influence as one of the world’s most high-profile public figures to advocate for the rights of women and girls and campaigned for Americans to live healthier lives.

The Obamas are not planning to use Netflix to counter President Donald Trump or other conservatives, but will focus instead on “storytelling to inspire us, to make us think differently about the world around us, and to help us open our minds and hearts to others,” the former first lady said.

The post Barack, Michelle Obama sign Netflix production deal appeared first on New Mail Nigeria.