Effects of Qualified Domestic Minimum Top-up Tax (QDMTT) ON Revenue Generation in Nigeria
- Yunusa, Acho; Shamsuddeen Y., B.; Ibahim K. M. & Michael Ezekiel Onuh
- DOI: 10.5281/zenodo.23181204
- ISA Journal of Business, Economics and Management (ISAJBEM)
Nigeria continues to face challenges in domestic revenue
mobilisation due to heavy dependence on petroleum revenue, tax compliance
limitations, profit shifting by multinational enterprises, and weaknesses in
tax administration. The introduction of the Qualified Domestic Minimum Top-up
Tax (QDMTT) under the OECD/G20 Pillar Two framework provides an opportunity for
countries to protect their corporate tax base and improve revenue generation.
This study examined the effect of QDMTT implementation on revenue generation in
Nigeria. Specifically, the study assessed whether QDMTT strengthens corporate
tax collection and enhances Nigeria’s capacity to mobilise additional revenue
from multinational enterprises. A quantitative research design using a survey
approach was adopted. The population consisted of 123 tax officers of the Nigeria
Revenue Service (NRS), Abuja Headquarters, and a census sampling technique was
employed. Data were collected through a structured questionnaire and analysed
using descriptive statistics, Pearson Product Moment Correlation, and
regression analysis at a 5% level of significance. Pasted markdown The findings
revealed that QDMTT implementation has a positive and significant effect on
revenue generation in Nigeria. The regression result showed that QDMTT
explained 58.4% of the variation in revenue generation (R² = 0.584), with a
significant positive coefficient (β = 0.764, p < 0.05). Pasted markdown The
study concludes that effective implementation of QDMTT can strengthen Nigeria’s
corporate tax base, reduce revenue losses associated with multinational profit shifting,
and improve domestic revenue mobilisation. It recommends that Nigerian tax
authorities develop clear implementation guidelines, strengthen digital tax
administration, improve access to multinational financial information, and
build technical capacity among tax officials to ensure effective enforcement of
QDMTT provisions. Pasted markdown.
Keywords: Qualified
Domestic Minimum Top-up Tax, QDMTT, Revenue Generation.