CAC Directs Content Creators To Register And Pay Taxes

CAC Directs Content Creators To Register And Pay Taxes

The Corporate Affairs Commission (CAC) has issued a directive urging social media content creators, including Instagram and TikTok users with substantial followings, to register their businesses with the commission as per the Company and Allied Matters Act of 2020….READ ALSO Clarity On Taxes: FIRS Debunks Claims Of Targeting Content Creators

This call comes amidst reported plans by the Federal Inland Revenue Service to integrate media content creators and influencers into the tax system.

During a courtesy visit by the Managing Director of Opay, Dauda Gotring, and his team in Abuja, the Registrar General of CAC, Hussaini Magaji, emphasized the importance of registration for businesses operating in Nigeria, regardless of their mode of operation or size.

Magaji stressed that the law mandates businesses to register with CAC, and ignorance of this requirement is not an excuse. He highlighted the significant revenue generated by social media and content creators, emphasizing the need for them to contribute their fair share of taxes to the government.

“It is stated in the Company and Allied Matters Act 2020 that for any business to operate in Nigeria, whether under one’s name or a different name, registration is mandatory,” Magaji affirmed.

He further mentioned the commission’s intention to conduct compliance checks to ensure that these businesses fulfill their tax obligations to the government.

The ongoing registration initiative, which aims to register an additional 300,000 business names in collaboration with Opay, aligns with Magaji’s broader target of registering 20 million businesses by 2024, contributing to the goal of creating 50 million jobs for Nigerian youths.

In response, Opay’s MD emphasized the organization’s commitment to extending banking services to the unbanked population while facilitating the registration of businesses with CAC. He underscored the importance of sensitizing account owners to ensure compliance with registration requirements.

As part of their efforts, Opay will work closely with CAC to ensure that all businesses, regardless of their scale of operation, are duly registered, contributing to a more robust and transparent business environment in Nigeria.