NBS: Nigeria rakes in N295.72bn company income tax in Q4 2020

NBS: Nigeria rakes in N295.72bn company income tax in Q4 2020

Nigeria recorded a total sum of N295.72 billion as Company Income Tax (CIT) in the last quarter of 2020, the National Bureau of Statistics (NBS) has revealed.

In is observed in the just released Sectoral distribution of Company Income Tax (CIT) data for Q4 2020 by the NBS that, the sum fell by 28.91 per cent from N416.01 billion generated in Q3 2020 and 18.31 per cent lower  year-on-year compared with N362.01 billion generated in Q4 2019.

According to the latest data, professional services including Telecoms generated the highest amount of CIT with N32.17 billion generated CIT and closely followed by other manufacturing, generating N25.64 billion.

Also, commercial and trading generating N19.41 billion while textile and garment industry generated the least and closely followed by mining and local government councils with N104.37 million, N136.99 million, and N298.73 million generated respectively.

Out of the total amount generated in Q4 2020, N162 billion was generated as CIT locally while N63.52 billion was generated as foreign CIT payment.

The balance of N70.20 billion was ascribed to CIT from other payments within the period under review.

A corporate tax is a tax on the profits of a corporation. The taxes are paid on a company’s operating earnings, which is revenue minus cost of goods sold (COGS), general and administrative (G&A) expenses, selling and marketing, research and development, depreciation, and other operating costs.

In Nigerian, companies are liable to company income tax (CIT) at the rate of 30 per cent.

However, for small companies in the manufacturing industry and wholly export-oriented companies with a turnover not exceeding N 1 million, the CIT rate is reduced to 20 per cent in the first five calendar years of operation.