Nigeria: Network facilities providers not subject to National Information Technology Development Agency (NITDA) levy
Tax Appeal Tribunal (Lagos)
Not subject to NITDA levy
The Tax Appeal Tribunal (Lagos) held that a network facilities provider was not a telecommunications company and therefore not subject to the National Information Technology Development Agency (NITDA) levy.
The case is: INT Towers Limited v. Federal Inland Revenue Service (3 February 2023)
The taxpayer was assessed a NITDA levy of 1% of its profit before tax payable by a telecommunications company under the NITDA Act. The taxpayer clarified that it is an infrastructure service provider to the telecommunications companies and was, therefore, not subject to the NITDA levy imposed on telecommunications companies.
The Federal Inland Revenue Service (FIRS) disagreed with the taxpayer’s position, and issued a notice of refusal to amend. The taxpayer then filed a notice of appeal before the Tax Appeal Tribunal.
The tribunal held that the taxpayer is a network facilities provider, and therefore not subject to the NITDA levy, which applies to telecommunications companies. Thus, the tribunal discharged the NITDA levy of ₦488,103,920.09 assessed on the taxpayer by the FIRS.
Read a February 2023 report [PDF 1.8 MB] prepared by the KPMG member firm in Nigeria
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