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