NBS: Tax from ICT Sector Rises 147% to N131.97bn – Report

The Nationwide Bureau of Statistics (NBS) Firm Earnings tax Report for Q3 2022, confirmed that tax collections from the sector rose to N131.97 billion in Q3’22 as towards N53.36 billion within the corresponding interval in 2021.

Accordingly, tax assortment fell by 15.26 p.c quarter-on-quarter (QoQ) foundation from N155.74 billion.

By way of sectoral contributions, the ICT sector contributed 27.31 p.c to the entire firm earnings in Q3’22, trailing behind the manufacturing sector, which contributed 28.76 p.c, whereas the monetary companies sector ranked third at 8.81 p.c contribution.

Recall that as a part of the drive to extend its income from non-oil sources and assist the implementation of the 2022 finances, the Federal Authorities made sure amendments to the Finance Act 2022.

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A part of the modifications was the introduction of taxes on Non-Resident Firms (NRCs) with digital presence in Nigeria.

Part 30 was amended by introducing a brand new sub-section that enables the federal government to evaluate non-resident corporations with a digital Important Financial Presence (SEP) in Nigeria; to tax on a good and cheap proportion of their turnover attributable to the SEP within the occasion the place there isn’t any assessable revenue, or the assessable revenue is lower than what’s to be anticipated from that kind of enterprise or can’t be ascertained.

As a mirrored image of elevated actions within the info and communication know-how (ICT) house, particularly on the again of the outbreak of COVID-19, Firm Earnings Tax (CIT) from ICT companies soared 12 months-on-12 months (YoY) by an enormous 147.30 p.c within the third quarter ended September 30, 2022 (Q3’22).