Categories: BusinessOn the Go

Nigeria generates N416bn from company income tax in Q3 2020

Author:
Mary Ugbodaga

The National Bureau of Statistics (NBS) says Nigeria generated N416.01 billion from company income tax (CIT) in third quarter of 2020 (Q3 2020) against N402.03 billion generated in second quarter of 2020 (Q2 2020) — representing a 3.48 percent increase.

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This was contained in NBS report, titled: ‘Company income tax by sectors (2015 – Q3 2020)’, released on Thursday.

CIT is a tax on the profits of incorporated entities in Nigeria, it also includes the tax on the profits of non-resident companies carrying on business in Nigeria.

Sectors that generated the highest amount of CIT, are: professional services, including telecoms, with N55.52 billion; banks and financial institutions with N24.05 billion.

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Sectors with the least amount of CIT were mining; textile and garment; industry and local government councils with N120.93 million, N161.51 million and N321.72 million respectively.

“Out of the total amounted generated in Q3 2020, N244.70 billion was generated as CIT locally while N70.34 billion was generated as foreign CIT payment,” the report read.

It also showed that N100.97 billion was generated as CIT from other payments.

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Meanwhile, Q3 2020 CIT revenue increased by 27.36 percent in Q3 2015 (N326.65 billion); 22.43 percent in Q3 2016 (N339.79 billion); 8.07 percent in Q3 2017 (384.93 billion); 14.71 percent in Q3 2018 (362.66 billion), however, it decreased by 20.31 percent compared to N520.89 billion generated in Q3 2019.

For CIT generated year-on-year, 2015 revenue total was N1.88 trillion; 2016 CIT decreased by 45.74 percent to N1.02 trillion: 2017 revenue increased to N1.25 billion; 2018 had N1.42 trillion, while 2019 CIT revenue was highest with N1.63 billion.

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