In a bid to bolster revenue collection and ensure tax compliance, Nigeria’s Federal Inland Revenue Service (FIRS) has set its sights on social media content creators and influencers, asserting that they constitute a substantial group of tax evaders.
Dare Adekambi, Special Adviser on Media to the FIRS chairman, revealed that skit makers, influencers, and other digital content creators are obligated to pay taxes, citing an existing law that mandates all income earners to fulfill their civic duty.
Adekambi stressed that even those earning in foreign currencies, particularly dollars, should contribute to the country’s tax revenue. He compared the situation to civil servants who are dutifully paying their taxes and emphasized the need for content creators to follow suit.
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To tackle the challenge of tracking these individuals, FIRS is exploring collaboration with the Corporate Affairs Commission (CAC) to bring these creators within the tax net.
The FIRS plans to initiate discussions with content creators and influencers, encouraging voluntary tax compliance. However, Adekambi made it clear that if a cooperative approach is not reciprocated, the tax authority is prepared to enforce mandatory tax payments.
He underscored the importance of leveraging data and technology to scale up tax revenues and pointed out that major social media platforms already contribute taxes to the government.
Adekambi questioned why individuals earning through platforms like Facebook, Instagram, and Twitter shouldn’t contribute their fair share to government revenue. The FIRS aims to establish a committee to comprehensively address the taxation of social media content creators and influencers.
Adekambi highlighted that utilizing technology and data is a key objective for the current FIRS chairman, allowing the government to predict revenue and plan effectively. In contrast to Nigeria, developed countries like the United States and Australia already have mechanisms in place for content creators and influencers to file tax returns, contributing to government coffers.
