Nigeria: Finance Bill 2021 including amendments to provisions of section 30 of Companies Income Tax Act was adopted by Senate

On 22 December 2021, the Senate adopted the Finance Bill 2021 and sent it to the President for assent. The Bill includes amendments to the Companies Income Tax Act, specifically through Sections 13(2)(c) and 30(1)(b)(ii), which address the taxation of digital services and the assessment of non-resident companies. Section 13(2)(c) broadens the definition of taxable activities to encompass digital transactions, including electronic commerce, online advertising, and data storage, thereby subjecting companies with a significant economic presence in Nigeria to taxation, regardless of physical presence. Additionally, Section 30(1)(b)(ii) authorises the Federal Inland Revenue Service to assess and charge these companies based on their digital activities.