NIGERIA:10 Highlights as FIRS, CAC Signals Move to Capture Content Creator into Tax Net

February 15, 2024 Jeremiah Amosu Western Africa, Nigeria 0

A major update that will change tax collection in the Nigerian Tax Administration is the move suggested by the Federal Inland Revenue Service and the Corporate Affairs Commission to now make mandatory the payment of tax for content creators.

With the likes of popular skit maker, Mr. Sabinus gifting 3 expensive cars to his crew and a few other show offs from other content creator on social media, there is a clear proof that the content creation industry is worth millions that could be taxed, increasing government revenue through tax.

CAC Signals Move to Capture Content Creator into Tax Net

From the above update, here are10 major highlights that is worthy of note:

  1. The FIRS through the CAC had urged social media content creators, Instagram users, and TikTok users with large followers to register their businesses in accordance with the Company and Allied Matters Act 2020.
  2. The FIRS is also said to have plans to include media content creators and influencers into its tax system.
  3. To achieve this, the Registrar General of CAC, Hussaini Magaji, had a close door meeting during a courtesy visit by the Managing Director of Opay and his team in Abuja.
  4. Opay in affiliation with CAC, will work to regularize 300,000 agents and merchants with the commission to expand the tax net, encourage businesses, and create more jobs for Nigerians.
  5. CAC has started the registration of two million small businesses in partnership with Moniepoint, a fintech company, to ensure compliance with tax regulations.
  6. Social media and content creators are identified as significant contributors to the economy but are reportedly not paying taxes to the Federal Government.
  7. The CAC plans to conduct compliance checks to ensure businesses, including social media content creators, start paying their taxes to the government.
  8. The commission in line with this taxation move aims to register another batch of 300,000 business names from Opay as part of its initiative to register 20 million businesses in 2024.
  9. Opay’s Managing Director has also expressed readiness to partner with CAC to register businesses.
  10. Opay is working to sensitize account owners to register their businesses with CAC, emphasizing that any operating business, regardless of size, should be registered.