(2 minutes read)
· The ActionAid Nigeria recently commended the Nigerian government’s reluctance to sign into the Organization for Economic Co-operation and Development, (OECD) tax deal. The country director of the organization, Ene Obi, said the OECD should better tax the digital economy
· Big tech companies need to be making bigger tax contributions. ActionAid Nigeria supported the reluctance of Nigeria to sign onto the OECD global tax reform deal as it considered the new plan unhelpful to Nigeria
· ActionAid Nigeria said that in Nigeria, tax regimes are dependent on the benefits the countries are bound to gain
The ActionAid Nigeria recently commended the Nigerian government’s reluctance to sign into the Organization for Economic Co-operation and Development, (OECD) tax deal. The country director of the organization, Ene Obi, said the OECD should better tax the digital economy. Big tech companies need to be making bigger tax contributions. ActionAid Nigeria supported the reluctance of Nigeria to sign onto the OECD global tax reform deal as it considered the new plan unhelpful to Nigeria.
The OECD consists of two parts. The first part states that if a company has a global turnover of more than Euros 20 billion and a profit margin of more than 10 percent, then 20-30 percent of the profit in excess of 10 percent of revenue will be allocated to market jurisdictions using a revenue-based allocation key. The second pillar, on its part, sets a global minimum tax rate of (at least) 15%. ActionAid Nigeria said that in Nigeria, tax regimes are dependent on the benefits the countries are bound to gain. The OECD regime, according to the association would not help the country.
