The Federal Inland Revenue Service (FIRS) has released an information circular dated September 1, 2022 for administering the National Agency for Science and Engineering Infrastructure Levy (NASENI levy). The levy relies on the National Agency for Science and Engineering Infrastructure (Establishment) Act, Cap. N3 LFN, 2004 (as amended) (NASENI Act), Federal Inland Revenue Service (Establishment) Act, No 13, 2007(as amended), and the Companies Income Tax Act, Cap. C21, LFN 2004 (as amended).
Section 20 (2)(b) of the NASENI Act imposes a levy at 0.25% of profit before tax on commercial companies and firms in the banking, mobile telecommunication, ICT, aviation, maritime, oil and gas sectors with a turnover of NGN100,000,000 and above. Federal Inland Revenue Service (FIRS) is the relevant authority to collect and remit the levy collected to the account of the Agency.
3.0 Effective Date
The effective date is January 1, 2022. In the 2022 year of assessment, specific companies will be assessed to NASENI levy on the profit before tax in the 2021 financial statements.
4.0 Filing, Assessment, and Payment
- A company will file NASENI levy returns alongside the corporate tax returns. The due date for filing the returns is the same as the time for filing the income tax returns.
- The NASENI levy is not a deductible expense for calculating the assessable profits.
- Payment can be made on or before the due date of filing. Where FIRS raises a notice of assessment on a company, the taxpayer must pay the levy within 30 days of serving the notice.
5.0 Penalty for Non-Compliance
Any company that does not comply with the assessment, payment, and filing rules will attract penalties in line with the relevant provisions of the tax laws.
6.0 Amendment or Revision of the Circular
FIRS may, at any time, withdraw or replace this Circular or publish an amended or updated version.