Nigeria: Proposed tax on electronic communication | KPMG | GLOBAL

Nigeria: Proposed tax on electronic communication services

Nigeria: Proposed tax on electronic communication

Pending legislation in Nigeria would imposed a “communication service tax” at a rate of 9% on users of electronic communication services.


Related content

The tax would not be imposed on “private users” of electronic communication services. The term “user” would be defined as “a customer or subscriber of any electronic communication network or broadcasting service and includes a customer that is an operator or provider of electronic communications network or service”. In effect, customers who purchase electronic communication services solely for resale (e.g., middlemen) would be liable for the tax on their purchases.

As proposed, providers of electronic communication services would be required to collect the tax on the supply of services and then remit the tax to the Federal Inland Revenue Service generally no later than the last working day of the month following the month of transaction. 


Read a March 2016 report [PDF 69 KB] prepared by the KPMG member firm in Nigeria: Tax Alert – Communication Service Tax Bill, 2015

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal