Editorial Board


Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

Issue 1, March 2022 - Subject




James ODIA and Sarah AKONOAFUA


ABSTRACT The paper examines the concept of digital taxation globally and in the Nigerian context where Digital Taxation in Nigeria was discussed. The regulations discussed covered; Digital Permanent Establishment Rules (Finance Act 2020); Companies Income Tax (CIT) and E-commerce; Personal Income Tax and E-commerce and Value Added Tax (VAT) on Electronic Commerce. Having reviewed various theoretical frameworks, the Optimal Taxation theory was reviewed as it relates to the concept of digital taxation. The challenges and potentials of taxing digital transactions in Nigeria and globally were also discussed. These factors include: digital infrastructure, digital platform, digital financial services, digital entrepreneurship, and digital skills. The paper argues that the Finance Act, 2020 tends to provide an avenue for better taxation in Nigeria. That means the previously non-existent tax leakages in the Nigerian digital economy would be eliminated due to the new tax rate. A newly created tax rate should reduce the already unheard of tax leakages in the Nigerian digital economy. However, extant laws in place did not cover transactions involving individuals, thus some tax avoidance is possible. While Nigeria has great potentials for entrepreneurship, it has a minor footprint in the global digital economy in terms of digital goods and services exports.