What is the latest decision on NITDA levy? What has the Tax Appeal Tribunal (TAT) decided? This is what this post seeks to educate you on. Let’s get started.
There have been massive developments in the Nigerian Tax space in recent years.
From developments regarding the OECD guidelines on minimum tax to landmark decisions on topical tax issues, it’s important to stay abreast of recent updates in the tax space.
The Tax Appeal Tribunal (TAT) has delivered a recent ruling on the applicability of the NITDA levy.
Background Of The Case
In the case of INT Towers Ltd v FIRS, the appellant, INT Towers is a company involved in operations relating to infrastructural sharing and allocating telecom facilities to telecoms in Nigeria. The appellant received an assessment notice from the FIRS for paying NITDA Levy to which they objected.
Subsequently, as it is with the FIRS, they issued a notice of refusal to amend, and so, INT Towers filed an appeal with the Lagos Tax Appeal Tribunal.
The Decision On NITDA Levy
The tribunal held thus, that network facilities providers, being not exactly telecommunications companies are not subject to the 1 percent NITDA levy.
Importantly, the tribunal clarified that obtaining an NCC license does not make one a telecom company and is automatically subject to the NITDA levy.
This decision is quite progressive and a big statement in the telecom world.
Reference
1 https://pwcnigeria.typepad.com/tax_matters_nigeria/2023/02/tat-rules-that-information-technology-it-levy-does-not-apply-to-network-facilities-providers.html accessed on Feb 2023
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