FIRS Set to Begin Direct Collections Of Taxes From Online Gaming Operators

Spread the love

READ ALSO:   UPDATE: WHAT the CBN Governor says about changing of Naira Notes in DECEMBER 2022 (READ FULL TEXT)

 

 

The Federal Inland Revenue Service (FIRS) has stated that it has commenced the deduction of taxes at transaction points from Online Gaming Transactions using the Sentinal National Payment Gateway and Electronic Solution.

 

 

The Executive Chairman, Muhammad Nami, in a public notice he signed, said the Service while directing full compliance by the online gaming community, explained that the Sentinal National Payment Gateway was a transaction processing system that enables Integrated Payment Services Providers to deduct taxes at the points of transaction and immediately remit the tax deducted to the government’s treasury.

 

 

“The FIRS is automating the administration of tax on online gaming using Sentinal National Payment Gateway and Electronic Solution.

 

READ ALSO:BREAKING: CBN Announces Date To Introduce Redesigned Naira Notes

“Sentinal National Payment Gateway is a transaction processing system that enables Integrated Payment Service Providers to deduct taxes at transaction points and remit the tax deducted directly to the government’s treasury.

“The deployment of Sentinal National Payment Gateway will simplify tax compliance for companies engaged in online gaming activities,” the FIRS Executive Chairman stated.

The FIRS also noted that all operators offering online gaming services in Nigeria were required “to connect to the Sentinal National Payment Gateway, deduct tax from online gaming transactions and remit same directly to the relevant government’s treasury not later than the 31st of December 2022″.

Mr Nami stated that though it was not mandatory for online gaming operators offering online gaming services from outside Nigeria to be incorporated in Nigeria, they are compelled by extant tax laws to connect to the Sentinal National Payment Gateway for the purposes of dedicating tax from the gaming transactions of players in Nigeria, and remitting same directly to the government purse.

READ ALSO:MAN destroys Range Rover he buys for lover for cheating on him (WATCH INSIDE LIFE VIDEOS+DETAILS)

Commenting on this approach to tax collection at the point of transaction, the Executive Chairman of the FIRS stated
that the country needed to innovate and harness technology for improved revenue generation from e-commerce as well as for accountability.

“The world is entering a challenging time where there is a strong obligation on Governments to increase tax revenue as a percentage of GDP so as to provide much-needed funding for local infrastructure and public services. Nigeria needs to innovate and harness technology to ensure that online transactions are taxed and accounted for.

“We have been very impressed with the Sentinal platform which allows us to not only collect tax revenues at source but also provides us with tax reporting and monitoring tools in real-time,” Mr Nami stated, adding that “the system will also integrate with our own TaxPro Max portal.”

READ ALSO:Meet The Nigerian-American Doctor Who Is Building The Largest Medical Research Hub In Africa

 

 

In his comments at a meeting with the tax authority head, the Director General of the National Lottery Regulatory Commission of Nigeria, Mr Lanre Gbajabiamila commended the adoption of this innovation, describing it as a “huge step” for taxation of the gaming industry.

“Online gaming continues to grow rapidly in Nigeria, particularly on mobile, and the adoption of E-technologies’ Sentinal National Payment Gateway is a huge step for us to allow us to capture gaming duty at the source.

“We are welcoming all responsible offshore gaming operators to apply for a Remote Operator Permit as long as they pass all the relevant criteria including full AML screening and responsible gaming practices.

We are proud to be the first country to adopt the Sentinal System and we believe it will bring a real national benefit to Nigeria,” Mr Gbajabiamila noted.

Johannes Oluwatobi Wojuola Special Assistant to the Executive Chairman, FIRS (Media & Communication) said in a statement issued on Wednesday that David Kicks, the CEO of the E-Technologies Global Limited, the proprietors of the Sentinal National Payment Gateway expressed excitement over the adoption of the system by the Service.

“Governments in rapidly developing nations are struggling to keep pace with the evolution of eCommerce and the ascent of mobile transactions.

 

READ ALSO:Chad Declares Seven Days of National Mourning Over Dozens Killed During Protests

“We are thrilled that the Nigerian Government has made the decision to integrate our Sentinal System, which empowers them to streamline online taxation.

“By understanding better how the payments ecosystem behaves and evolves, we can drive a paradigm shift towards a point of consumption tax methodology,” he said.

SOJ WORLDWIDE ONLINE NEWS

We are here to keep you abreast with news updates now that the political space in Nigeria is open and gaining momentum daily towards the 2023 general elections.

 

 

 

 

 

This is the opportunity you have been waiting for, let your products and services go viral in all our Social Media contacts including, Opera News, Nairaland, Google, Twitter, Facebook, LinkedIn, Instagram, WhatsApp and Telegram across the globe.

 

 

 

 

 

Call us or send your message to our WhatsApp on 09069473894 for your advert placement, Press Release, Conference, Interviews, Publicity and awareness to reach your target audience.

 

 

 

 

 

SOJ WORLDWIDE….an ONLINE NEWS with a difference.

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.