The Federal Inland Revenue Service (FIRS) has stated that it has commenced the deduction of taxes at transaction points from online gaming transactions using the Sentinal National Payment Gateway and Electronic Solution

In a public notice signed by its Executive Chairman, Muhammad Nami, the Service, while directing full compliance by the online gaming community, explained that the Sentinal National Payment Gateway was a transaction processing system that enables, integrated payment services providers to deduct taxes at the points of transaction and immediately remit the tax deducted to the government’s treasury.

The FIRS also noted that all operators offering online gaming services in Nigeria, not later than the 31st of December, 2022, were required to connect to the Sentinal National Payment Gateway, deduct tax from online gaming transactions and remit same directly to the relevant government’s treasury.

The notice stated that though it was not mandatory for online gaming operators offering online gaming services from outside Nigeria to be incorporated in Nigeria, they are compelled by extant tax laws to connect to the Sentinal National Payment Gateway for the purposes of deducting tax from the gaming transactions of players in Nigeria, and remitting same directly to the government purse.

Executive Chairman of the FIRS, Muhammad Nami, while commenting on this approach to tax collection at the point of transaction, stated that the country needs to innovate and harness technology for improved revenue generation from e-commerce as well as for accountability.