Federal Inland Revenue Service (FIRS) has refuted recent claims suggesting its intention to tax online content creators, specifically skit makers.
An anonymous staff member clarified that skit makers, as individuals, do not fall under the FIRS purview, emphasising that the agency is focused on collecting Company Income Tax from corporate entities with profits of N25 million and above.
“FIRS does not tax Personal Income Tax, states governments do. FIRS collects Company Income Tax. Only those who are corporate names and earn profit of N25 million and more are required to pay tax,’’ the source stated.
Contrary to media reports, the FIRS asserted that it does not handle Personal Income Tax, highlighting that state governments are responsible for such taxation. The agency aims to dispel the notion that media content creators and influencers are a significant group of tax evaders.
In a recent development, the FIRS unveiled a new organizational structure aimed at enhancing the country’s tax administration.
Zach Adedeji, the Executive Chairman, stated that the restructuring aligns with a more efficient and contemporary tax administration methodology. Embracing an integrated tax approach, the agency plans to leverage technology for a seamless taxpayer experience.
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Adedeji stated, “This approach positions FIRS at the forefront of innovation, ensuring that we meet the evolving needs of our taxpayers in a rapidly changing world.
“The structure advocates a comprehensive approach to taxpayer services, consolidating our core functions and support under one umbrella.
“By tailoring our services to specific taxpayer segments, we aim to simplify the taxpayer experience.
“No more complexities, no more overlaps, just a seamless and user-friendly interaction for every taxpayer,” he added.
Adedeji emphasised that the restructuring signifies a departure from traditional tax categorization, marking a shift towards a more user-friendly interaction for every taxpayer.