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FIRS begins taxing online gaming operators

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By Okunloye Abiodun

Nigeria's Tax Agency, FIRS Starts Collecting Taxes From Online Gaming Operators.

The Federal Inland Revenue Service (FIRS), which is Nigeria’s tax agency, recently made an announcement that it has begun the process of directly deducting and collecting taxes at points of transaction from online gaming companies by utilizing the Sentinel National Payment Gateway and Electronic Solution. This information was communicated to the media on Wednesday by Johannes Oluwatobi Wojuola, who serves as the Special Assistant on Media and Communication to the Executive Chairman of the FIRS.

Muhammad Nami, the Service’s Executive Chairman, while urging the online gaming community to fully comply, he explained in the statement that the Sentinel National Payment Gateway will operate a transaction processing system that allows Integrated Payment Services Providers to remove taxes at the transaction points and instantly remit the tax deducted to the treasury of government, it reads “The FIRS is automating the administration of tax on online gaming using Sentinel National Payment Gateway and Electronic Solution.”

All online gaming operators in and outside Nigeria would be taxed.

With the implementation of the Sentinel National Payment Gateway, it will make tax compliance easier for companies who are involved in the operation of online gaming platforms. The Service also noted that all operators that provide online gaming services in Nigeria were required to integrate into the Sentinel National Payment Gateway, subtract tax from all online gaming transactions, and directly remit the same to the relevant government’s treasury by the end of the year 2022 at the latest.

More so, as regards online gaming operators who provide online gaming services from outside Nigeria to Nigeria gamers, the notice stated that although it was not mandatory tor then to be incorporated in Nigeria, however, they are obligated by extant tax laws to integrate with the Sentinel National Payment Gateway for the specific purpose of removing tax from the gaming transactions of players who are in Nigeria and remit them directly to the purse of government.

Nigeria needs funds for local infrastructure and public services.

When addressing the approach of the tax collection at the point of transaction, Nami added that Nigeria needed to innovate and take advantage of technology for more e-commerce revenue generating and accountability. He explained that the obligation on governments to raise tax revenue as a percentage of GDP is great when the world enters a difficult period, according to Nami, in order to raise much needed funds for local infrastructure and public services. Nigeria must embrace innovation and technological advancement to make sure that online transactions are taxed and properly recorded.

Speaking further, Nami affirmed that they had been really delighted with the Sentinel platform, which not only enables them to receive tax revenues at the source but also offers them real-time tax reporting and monitoring features. Moreover, Lanre Gbajabiamila, the Director General of the National Lottery Regulatory Commission of Nigeria, commented on the development during a meeting with the head of the tax authority and called the approval of the new innovation a “huge step” for taxing the gaming industry.

Operators that meet requirements can apply for a Remote Operator Permit.

Moreover, Gbajabiamila explained that as online gaming services continue to thrive rapidly in Nigeria, particularly for mobile, the adoption of Sentinel National Payment Gateway E-technologies is a tremendous notch which allows them to grasp gaming duty at the source. He also said that as long as they meet all applicable requirements, such as thorough AML screening and safe gaming operations, they are welcome to apply for a Remote Operator Permit. Being the first nation to adopt the Sentinel System, they take great pride in it as they believe Nigeria will profit greatly from it.


Related Link

FIRS: Website


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jdpumping
jdpumping
1 year ago

Such a good idea because such huge amount will be realised from the etax revenue of game operators on line but it should be used judiciously

Abusi
Abusi
1 year ago

All businesses in Nigeria deserves to be taxed. If the online gaming operators are taxed then it is for the public good. This will generate revenue to the government.

Ultra0711
Ultra0711
1 year ago

What a well devised plan to generate more revenue into the government treasury. Considering how people play online games in Nigeria am sure the taxes will be huge.

Haykaylyon26
Haykaylyon26
1 year ago

This is a nice way to increase the generation of more revenue. And alot of people play online game so we can received tax from them

theApr
theApr
1 year ago

The approach of the tax collection at the point of transaction, Nigeria needs to innovate and take advantage of technology for more e-commerce revenue generating and accountability.

Christiana
Christiana
1 year ago

By putting in place the Sentinel National Payment Gateway, companies that run online gaming platforms will find it easier to pay their taxes.

Bola12
Bola12
1 year ago

Nigeria’s Federal Inland Revenue Service (FIRS) has began directly deducting and collecting taxes from online gambling operators using the Sentinel National Payment Gateway and Electronic Solution.

Tolaniiii
Tolaniiii
1 year ago

The FIRS is implementing the Sentinel National Payment Gateway and Electronic Solution to streamline the collection of taxes on internet gambling.

Chibuzor
Chibuzor
1 year ago

It is to the government’s credit that the FIRS has initiated the process of immediately deducting and collecting taxes from online gambling companies at the sites of transaction.

Taiwoo
Taiwoo
1 year ago

When using the Sentinel National Payment Gateway, Integrated Payment Services Providers will be able to deduct taxes directly from customer purchases.

Godsewill Ifeanyi
Godsewill Ifeanyi
1 year ago

Using Sentinel National Payment Gateway and Electronic Solution, the FIRS is currently in the process of automating the administration of the tax on internet gaming.

Kazeem1
Kazeem1
1 year ago

Companies who are involved in the operation of online gambling platforms will find it much simpler to comply with tax regulations after the Sentinel National Payment Gateway has been put into place, as a result.

Adesanyaj72
Adesanyaj72
1 year ago

Nigeria needed to be more creative and make better use of technology to increase the amount of money made from e-commerce while also making sure that it was properly accounted for.

Nwachukwu Kingsley
Nwachukwu Kingsley
1 year ago

Nigerian players’ gaming transactions will have tax automatically deducted and remitted to the government coffers upon integration with the Sentinel National Payment Gateway, as required by current tax regulations.

Remi1
Remi1
1 year ago

With the implementation of the Sentinel National Payment Gateway, it will make tax compliance easier for companies who are involved in the operation of online gaming platforms

Hassan Isa
Hassan Isa
1 year ago

In order to comply with Nigerian law, businesses providing online gambling services were needed to connect with the Sentinel National Payment Gateway, deduct tax from all gambling transactions, and send the funds to the government.

Iyanu12345ogg
Iyanu12345ogg
1 year ago

The Sentinel National Payment Gateway will operate a transaction processing system that allows Integrated Payment Services
Tax should be encouraged.

Tonerol10
Tonerol10
1 year ago

All this tax self what is government doing with it. If all the tax collected from people and companies is use well. We will happy. Government should do the needful on tax

DimOla
DimOla
1 year ago

That is good news from the FIRS on Taxes From Online Gaming Operators. It shows that FIRS have started moving digital.

Adeolastan
Adeolastan
1 year ago

Federal government is been finding all opportunity available to generate revenue,but this may seems as a way of generating income but it will still affect the people that involves in playing all this online games.

SarahDiv
SarahDiv
1 year ago

There is double taxation already in Nigeria especially in Lagos. Now the FIRS have started Collecting Taxes From Online Gaming Operators. Though they have gone digital racing to meet up with the standard of the world but will only worsen the livelihood of the masses if the issues of double taxation is not addressed.