The National Bureau of Statistics (NBS) has reported that aggregate Company Income Tax (CIT) revenue generated by the federal revenue service grew to N714.40 billion in the second quarter of 2022.
The Bureau, in its ‘CIT Report for Q2 2022’ published on Friday, indicated that the Q2 accruals represented a 29.53 percent quarter-on-quarter growth from the N551.53 billion collected from the revenue source in the first quarter of this year.
The report reflected that on a year-on-year basis, CIT collections in Q2 2022 increased by 51.34 percent over the revenue accruals in the corresponding quarter of 2021.
According to the agency, while local payments generated from the revenue source totals N634.01 billion, the foreign CIT component accounted for N80.39 billion in the quarter under review.
The Bureau clarified that on a quarter-on-quarter basis, the activities of accommodation and food services recorded the highest growth rate with 481.93 percent followed by Information and Communication with 430.67 percent, and Transportation and Storage with 339.08 per cent.
However, it reported that that conversely, activities of extraterritorial organisations and bodies had the lowest growth rate with -42.59 percent, followed by activities of Households as employers, undifferentiated goods and services-producing activities of households for own use with -31.80 per cent.
On sectoral contributions, the Bureau disclosed that the top three largest shares in Q2 2022 were manufacturing with 27.55 per cent; Information and Communication with 24.56 percent and Financial and Insurance with 14.98 percent.
Also, it reported that on the other hand, the activities of Households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.004 percent
The agency further reported that “this was followed by activities of Extraterritorial organisations and bodies with 0.07 percent; and water supply, sewage, waste management and remediation activities with 0.12 percent.”
The Company Income Tax (CIT) is governed by Companies Income Tax Act (CITA), Cap C21, LFN 2004 (as amended) as a tax imposed on profit of a company from all sources. The rate of tax is 30% of total profit of a company.
The Act exempts some profits from CIT provided they are not derived from trade or business activities carried out by the company, for example, a cooperative society.
The CITA further provides that every company shall pay provisional tax not later than three months from the beginning of each year of assessment, which is an amount equal to the tax paid in the previous year of assessment as a payment on account of the year’s income tax assessment.
