The Nigerian Tax Policy on E-Commerce on Social Media: A Study of E-Informal Sector ()
ABSTRACT
Currently e-commerce has developed to be a vital part of business
activities and our daily lives. The effects of globalization and swift developments are experienced in
information and technology level of e-commerce. Tax administrators in Nigeria
are being confronted with myriads of challenges and difficulties adapting to
the new information technology, “digitalization”. They aimed at examining the
effect of adoption of e-taxation on revenue generation in Nigeria on social
media companies operating in Nigeria’s Internet domain. The study adopted a causal research design. This is a
design which explores the effect of one variable on another. The study revealed
that an element of change in the standard regulations among the tax authority
(FIRS) for about 5.221, will give way for benefits of revenue generation within
social media companies operating in Nigeria’s Internet domain, which explains that FIRS faces
challenges on modalities of taxing
online companies and they can do more by implementing policies in
consonant with social media companies in Nigeria. The study concludes that the country’s
major challenge of e-commerce as it relates to its tax system has been that the
laws governing direct taxes are at the moment inadequate and out of date; they
are premised on the concept of permanent establishment as defined in the double
tax treaties and recommend that efforts should be made to set up a tax
intermediation body. This body ought to be relevant for the digital world,
utilize Internet Service Providers (ISPs) as a responsible authority for the
collection, calculation and payment of electronic tax.
Share and Cite:
Panle, R. and Okpara, A. (2021) The Nigerian Tax Policy on E-Commerce on Social Media: A Study of E-Informal Sector.
Open Journal of Business and Management,
9, 2223-2239. doi:
10.4236/ojbm.2021.95119.