The National Bureau of Statistics has said that the Company Income Tax (CIT) for Q1 2022 increased to N532.48 billion.
According to the bureau, this is a growth rate of 53.09 percent on a quarter-on-quarter basis from N347.81billion in Q4 2021.
CIT is a tax imposed on the profit of a company from all sources. The rate of tax is 30% of the total profit of a company. Some profits are exempted from CIT provided they are not derived from trade or business activities carried out by the company
NBS said, in its report, “local payments recorded were N209.13 billion in Q1 2022, while Foreign CIT Payment contributed N323.35 billion. On a quarter-on-quarter basis, the Activities of extraterritorial organisations and bodies recorded the highest growth rate with 60.61%, followed by Education with 39.76%, and Construction with 38.98%.”
Also, the bureau noted that activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with – 79.94%.
This was followed by Accommodation and food service activities with -51.07%. In terms of sectoral contributions. The top three largest shares in Q1 2022 were Manufacturing with 21.31%, Information and communication with 14.03%, and Financial and insurance with 12.20%.
“Conversely, the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02%, followed by Activities of Water supply, sewerage, waste management and remediation with 0.19%, and Activities of extraterritorial organizations and bodies with 0.34%. However, on a year-on-year basis, CIT collections in Q1 2022 increased by 35.61% from Q1 2021”, the NBS said.