Foreign companies pay over N505.6bn in taxes in 2021

Foreign companies operating in Nigeria in 2021 paid over N505.6 billion in taxes to the account of the federal government.

This is 30.01 per cent of the total N1.69 trillion Company Income Tax (CIT) generated by the Federal government for the year.

The National Bureau of Statistics (NBS) revealed this in its latest CIT report published on its website over the weekend.

NBS also revealed that local companies paid N1.12 trillion which is 66.22% of the total tax generated while other tax payments amounted to N63.57bn (3.77%).

For a quarterly breakdown, NBS said N392.77bn was generated in the first quarter, N472.07bn in the second quarter.

In the third and fourth quarter, N472.52bn and N347.81bn tax were paid by companies to federal government accounts.

On sectorial breakdown the report reads: “In Q1 2021, breweries, bottling and beverages generated the highest amount of CIT with N23.26bn generated and closely followed by professional services including telecoms which generated N18.17bn.

“State ministries and parastatals generated N17.35bn, while textile and garment industry generated the least, and closely followed by mining and automobiles/assemblies with N13.49m, N34.40m and N73.57m generated respectively.

“In Q2 2021, professional services generated the highest amount of CIT with N130.09bn generated and closely followed by ‘Other Manufacturing’ which generated N87.27bn; banks & financial institutions generated N60.01bn while textile and garment industry generated the least and closely followed by automobiles and assemblies and pioneering with N27.23m, N62.15m and N64.30m generated respectively.

“Third quarter 2021 recorded manufacturing activity (N64.48bn); Information and Communication activity (N58.15bn); and mining & quarrying activity (N36.01bn) as the top three largest share of revenue at 22.08 per cent, 19.91 per cent and 12.33 per cent respectively.

“In terms of sectoral contributions, the top three largest shares in Q4 2021 were information and communication (N51.05bn) with 19.72 per cent; manufacturing (N45.09bn) with 17.42 per cent; and financial and insurance activities (N31.06bn) with 12.00 per cent.”