BIJED

Abstract

This study examined the tax challenges inherent in the digital economy as it relates to Nigeria. Literature were review from journals and online articles on different researchers analysis on the digital economy and how developing countries like Nigeria and the international community are carrying on with the taxation challenges in the digital economy. The study scrutinized the significant economic presence (SEP), the approach of the Organization for Economic Co-operation and Development (OECD) to taxing the digital economy in Nigeria. Literature on challenges in taxing the digital economy in Nigeria include;outdated regulatory frameworks, erratic internet connectivity, digital illiteracy and data privacy issues and the efforts made toproffer solutions are addressed such as the need for the government to introduce emerging technologies such as Artificial intelligence (AI), blockchain and others.In essence this paper opines that tackling the taxation challenges in the digital economy will improve and increase Nigeria’s source of revenue generation which will foster growth and development in this 21st century. In all, it suggests that more empirical studies need to be carried out to solve the inherent tax challenges.