Implication of Global Minimum Tax on Economic Activity in Nigeria. As the world moves towards establishing a global minimum tax rate of 15%, Nigeria faces a crossroads with potential impacts on foreign direct investment (FDI), tax revenue, and its overall economic landscape.
In July 2021, over 136 countries, representing more than 90% of the world’s GDP, agreed on a framework for a global minimum corporate tax rate.
This groundbreaking agreement, driven by the OECD and G20’s Inclusive Framework, is designed to curb tax avoidance by multinational corporations and ensure that profits are taxed fairly, no matter where they are earned.
This video is essential for anyone interested in understanding how global tax policies affect Nigeria’s economy.
What We Cover in This Video:
- Current Tax Landscape in Nigeria: Explore the complexities of Nigeria’s tax system, including corporate tax rates, additional levies, and the challenges posed by tax avoidance.
- Global Minimum Corporate Tax Rate Proposal: Understand the global minimum tax rate initiative and its potential effects on Nigeria’s ability to attract foreign investment.
- Implications for Nigeria: Analyze how this global tax reform might reshape Nigeria’s tax revenue, influence multinational corporations, and affect small and medium-sized enterprises (SMEs).
- Impact on Multinational Corporations: Discover how multinationals operating in Nigeria may need to adjust their tax planning strategies in response to these changes.
- Considerations and Domestic Reforms: Delve into the necessary domestic tax reforms that Nigeria could consider to remain competitive while adhering to international tax standards. Collaboration with International Partners: Learn why Nigeria must collaborate with global partners to effectively navigate the evolving tax landscape.
- Base Erosion and Profit Shifting (BEPS): We explain BEPS and the OECD’s efforts to tackle it, ensuring that profits are taxed where economic activities are performed.
- Pillar 2 of the OECD/G20’s Inclusive Framework: Understand how the Global Anti-Base Erosion (GloBE) proposal aims to implement a global minimum tax rate, targeting large multinational enterprises.
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