Three of Nigeria’s leading corporations have revealed that they paid a combined N14,273,553,510 in Company Income Tax (CIT) in the three months ended September 30, 2021.
BUA Cement Plc, Guaranty Trust Holding Company Plc and the United Bank for Africa Plc were the listed corporations that announced via their various unaudited financial statements released this week how much that paid in the third quarter (Q3) and the year to date.
Nigeria’s Company Income Tax (CIT) rate is 30 percent for large corporations, firms with gross turnover greater than N100 million, and it is assessed on a preceding year basis – tax is charged on profits for the accounting year ending in the year preceding assessment.
Breaking down the numbers, BUA Cement paid N2.256 billion in the third quarter of 2021, an increase of 48.78 percent from N1.516 billion paid in the same quarter of 2020. The company posted a profit before tax of N24.766 billion for the quarter under review.
However, because the amount paid (or estimated to be paid) is below 30 percent stipulated in the nation’s tax law, a better explanation for the uncaptured amount, which Investors King estimated at N5.174 billion, would be the tax credit Federal Government offered BUA Cement during the period.
United Bank for Africa Plc (UBA) paid N3.152 billion in CIT in the quarter under review. A 481.5 percent jump from N542 million paid in the corresponding quarter of 2020. The leading bank realised N47.166 billion profit before tax in Q3 2021. Also, the amount captured does not include tax credit.
Guaranty Trust Holding Company Plc (GTCO Plc) paid the most CIT at N8.866 billion. GTCO Plc grew profit before tax from N57.638 billion in Q3 2020 to N58.852 billion in Q3 2021. Again, the amount paid does not reflect tax exemption.
This brings the total amount paid by the three leading corporations to N14.274 billion.
