The third quarter ended September 30, 2022 (Q3’22) saw a huge increase in Company Income Tax (CIT) from ICT firms year over year (YoY) of 147.30 percent as a result of increased activities in the information and communication technology (ICT) sector, particularly as a result of the COVID-19 outbreak.
According to the National Bureau of Statistics’ (NBS) Business Income Tax Report for the third quarter of 2022, the sector’s tax receipts increased to N131.97 billion in Q3’22 from N53.36 billion during the same time in 2021.
On a Quarter-over-Quarter (QoQ) basis, tax revenue decreased from N155.74 billion by 15.26%.
In terms of sectoral contributions, the ICT sector contributed 27.31 percent to the total company income in Q3’22, trailing behind the manufacturing sector, which contributed 28.76 percent, while the financial services sector ranked third at 8.81 percent contribution.
CBN’s Policy Blocks Banks, Investors From N622bn illegal Earnings
Recall that as part of the drive to increase its revenue from non-oil sources and support the implementation of the 2022 budget, the Federal Government made certain amendments to the Finance Act 2022.
Part of the changes was the introduction of taxes on Non-Resident Companies (NRCs) with digital presence in Nigeria.
Section 30 was amended by introducing a new sub-section that allows the government to assess non-resident companies with a digital Significant Economic Presence (SEP) in Nigeria; to tax on a fair and reasonable percentage of their turnover attributable to the SEP in the instance where there is no assessable profit, or the assessable profit is less than what is to be expected from that type of business or cannot be ascertained.
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