FIRS: National Information Technology Development Levy

The Federal Inland Revenue Service (“FIRS”) has issued a public notice notifying all taxpayers (Individuals, Partnerships, Enterprises, Corporate organisations) of a nationwide tax enforcement exercise commencing from 18 December 2019. Amongst the taxes listed is the National Information Technology Development Levy under the National Information Technology Development Agency Act (“NITDA”). The NITDA levy applies to the following companies:

1. GSM Service providers and all Telecommunication Companies;
2. Cyber Companies and Internet Providers;
3. Pensions Managers and Pension related Companies;
4. Banks and other Financial Institutions;
5. Insurance Companies.

The applicable levy is 1% and is payable on profit before tax by companies with an annual turnover of ₦100,000,000 (One Hundred Million Naira) and above.
The FIRS under the NITDA is authorised to assess, collect the levy and remit to the fund established by the NITDA.

The levy is filed the same time a taxpayer is filing Companies Income Tax (CIT) returns, and it is due and payable on the due date of filing tax returns for a self-assessment filer. The levy is equally paid within 60 days after FIRS has served notice of assessment on a company.

The consequence of non-payment of the levy within 30 day of a demand notice by NITDA are as follows:

1. Unpaid levy,
2. Plus 10 percent of the unpaid levy, and
3. Interest at the prevailing minimum rediscount rate of the Central Bank of  Nigeria plus spread to be determined by the Minister.

Source: Aluko oyebode