Company income tax rises by 29% to N714.40bn in 3 months

Nigeria has recorded an aggregate Company Income Tax (CIT) of N714.40 billion for the second quarter of 2022, a growth rate of 29.53 per cent on a quarter-on-quarter basis from N551.53 billion in Q1 2022.

The National Bureau of Statistics (NBS) disclosed this in the CIT Report for Q2 2022.

CIT is a tax on the profits of registered companies in Nigeria. It also includes the tax on the profits of foreign companies carrying on any business in Nigeria.

The CIT is currently charged at the rate of 30 percent for companies having more than N100 million in turnover — and 20 percent for companies with a turnover between N25 million and N100 million.

According to the NBS, the revenue generated from companies from April to June represents an increase of 29.53 percent on a quarter-on-quarter basis from N551.53 billion generated in Q1 2022.

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“On the aggregate, company income tax (CIT) for Q2 2022 was reported at N714.40 billion, indicating a growth rate of 29.53 percent on a quarter-on-quarter basis from N551.53 billion in Q1 2022,” the report reads.

“Local payments received were N634.01 billion, while Foreign CIT payment contributed N80.39 billion in Q2 2022.”

In terms of sectoral contributions, the report said the top three largest shares in Q2 2022 were manufacturing with 27.55 per cent (N174.7 billion); information and communication with 24.56 percent (N155.7 billion), and financial and insurance with 14.98 per cent (N94.9 billion).

On the flip side, the contribution of households recorded the least values.

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