FUGAZ pays N8 Billion information technology tax in 2021

The top five Nigerian banks by market capitalization FUGAZ (FBN Holdings, UBA Plc, Guaranty Trust Bank, Access Bank and Zenith Bank) paid N8 billion as an information technology tax in 2021. Banks have disclosed this in their respective financial results. One year period.

Taxes are mandated by the National Information Technology Development Agency (NITDA) ACT 2007 and paid as contributions to the National Technology Development Fund (NITDEF)

According to the government, the funds will be paid by NITDA for the technological development of Nigeria.

Amount paid by each bank

• The breakdown of bank payments in 2021 shows that Zenith Bank contributed the most to technology funds among the top five banks. The World Bank paid 2.6 billion Newtons, surpassing 2.1 billion Newtons in 2020.
• FBN Holdings also paid 2.1 billion Newtons in 2021. That’s a 377% increase in payments compared to the 440 million Newtons banks paid in 2020.
• Guaranty Trust Bank donated 1.7 billion N to the fund last year. However, this was less than the 2 billion N paid to NITDEF in 2020.
• According to Access Bank’s financial results, the company paid 1.06 billion Newtons this year, an increase of 17.5% compared to 999.9 million Newtons paid in 2020.
• The United Bank for Africa (UBA) paid 599 million Newtons in 2021, 3.6% higher than the 578 million Newtons paid in 2020.

What you need to know

• Section 12 (1) of the National Information Technology Development Agency (NITDA) ACT 2007 established the National Information Technology Development Fund, and subsection 2 states: “It shall be paid and credited to a fund established under subsection (1) of this section. Around Listed in the third schedule of this law, the third schedule N The cents of the company and the company’s pre-tax profit paid by the company with annual sales of 100,000,000 or more are tax deductible.
• Companies that are taxable as described in the “Third Schedule” include GSM service providers and all telecommunications companies. Cyber ​​enterprises and internet service providers. It also includes non-IT companies such as pension managers and pension-related companies. Banks and other financial institutions; and insurance companies.
• As stipulated in the law, the Federal Internal Revenue Service (FIRS) is to assess and collect the levy imposed.
• The law also provides for penalties for non-compliance, stating: “Within two months from the Demand Note, any company, institution, or organization that fails to pay the tax or import tax levied under Article 11 of this Act commits a breach and is convicted of N1, A fine of 000,000.00 or more will be imposed. The Chief Executive Officer of a company, institution or organization commits the breach himself unless he proves that the act or omission that constitutes the breach was done without his knowledge. As if, you are responsible for being prosecuted and punished for the breach, consent or acquiescence. “

Source: Tetracyclined7k