The National Lottery Regulatory Commission (NLRC) has clarified that Online Gaming Operators in the country who are properly licensed and tax compliant are exempted from the new tax regulation proposed by the Federal Inland Revenue Service (FIRS).
In a statement signed on Friday by the Director General of the commission, Mr. Lanre Gbajabiamila, he noted that the proposed tax applied to remote gaming operators operating strictly outside the country’s jurisdiction.
The FIRS notice revealed that online gaming operators don’t need to be incorporated in Nigeria to deliver online gaming services in Nigeria.
But that they must connect to the platform to deduct tax from gaming transactions of players in Nigeria and remit directly to the government.
“Every operator offering online gaming services in Nigeria is required not later than Dec. 31, to connect to the Sentinal National Payment Gateway, where taxes will be deducted from the online gaming transactions and remitted directly to the relevant government treasury.
“All companies engaged in online gaming activities are to take note of this notice for compliance.
“The FIRS expects full compliance, as non-compliant operators shall be visited with sanctions in accordance with extant laws.”
Gbajabiamila, however, stated that the clarification became necessary to douse the panic and confusion already created in the gaming industry in the country regarding the propriety and justification of the new tax regime.
“The NLRC deeply regrets any misconceptions these publications have caused to our esteemed gaming operators and other stakeholders in the industry in Nigeria,” Gbajabiamila said.
via: Information Nigeria