An Analysis of the Challenges in taxing Digital and E-Commerce Economy in Nigeria.

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dc.contributor.authorIsau Olatunji Ahmed
dc.date.accessioned2026-05-14T10:28:58Z
dc.date.available2026-05-14T10:28:58Z
dc.date.issued2018
dc.description.abstractThe normative basis for the taxation of foreign companies under the international tax rules is rooted in the traditional requirement of maintaining such companies to establish physical and taxable presence in the form of a ‘permanent establishment (PE)’ in a country upon which their income and profit will be subjected to tax. In line with this, the provision of Section 54 of the Companies and Allied Matters Act (CAMA) requires foreign companies desirous of carrying on business in Nigeria to incorporate a separate entity for that purpose. However, the advent of globalization led to the emergence of digital and e-commerce companies that could extend their business activities to other countries without necessarily having a PE. This altered the basis of taxation under the international tax rules and created a situation whereby such companies can carry out business activities in Nigeria without having physical and taxable presence in the country. The implication of this is that such companies usually avoid tax in the country. This constitute a significant challenge for a developing country such as Nigeria. Yet, there is no clear rules in the country on how the income and profit of such companies will be subjected to tax while had resulted in substantial revenue loss. The objective of this article is to examine the nature and the tax challenges of the digital and e-commerce economy. The article will also examine the various recommendations that have been made by the international community led by the Organization for Economic Cooperation and Development (OECD) for countries to overcome these tax challenges. The article recommended that the Nigeria government should urgently put in place necessary legal framework and administrative procedures to domesticate and implement the various recommendations of the OECD in this regard to prevent loss of revenue.
dc.identifier.citationNile University Law Journal. 1(1): 191-205
dc.identifier.issn2659-0255
dc.identifier.urihttps://kwasuspace.kwasu.edu.ng/handle/123456789/7125
dc.language.isoen
dc.publisherFaculty of Law, Nigeria Turkish Nile University, Abuja.
dc.titleAn Analysis of the Challenges in taxing Digital and E-Commerce Economy in Nigeria.
dc.typeArticle
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