MTN Clarifies Tax Remittances In 2021

…Says we paid N98.9bn for VAT, N99.2bn for CIT’

MTN Nigeria Communications Plc says it fulfilled all its tax obligations due to the federal government in 2021.

The telecom company had said it paid N618.7 billion in direct and indirect tax to the Nigerian government agencies in 2021 — representing approximately 13.5 percent of the total collection by the Federal Revenue Inland Service (FIRS) for the year.

However, some media reports claimed the amount “purported” by MTN was questionable.

Providing clarifies in a corporate filing on Monday, Uto Ukpanah, company secretary, MTN Nigeria, said the company was tax compliant.

“MTN Communications Plc (MTN Nigeria or the Company) is aware of the media reports regarding discrepancies in the figures communicated by the Company,” it said.

“As at 31 December 2021, the company reported that it made a total contribution of up to N757.7 billion to the Federal Government of Nigeria and its relevant agencies through taxes, levies, fees and duties.

“Without prejudice but specific to the Federal Inland Revenue Service (FIRS), direct remittances to FIRS in 2021 was N291.7 billion, made up of the details listed below, while the balance represents VAT, levies, fees and duties paid to other federal government agencies.”

The company further explained that it paid value-added tax on revenue worth N98.99 billion, withholding tax culminating in N71.17 billion, and companies income tax of N99.28 billion.

Others are stamp duties worth N8.47 billion, tertiary education tax of N10.64 billion, and information technology levy of N3.09 billion, making total direct remittance of N291.7 billion.

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“MTN Nigeria is a tax compliant organisation with all its tax obligations settled,” it added.

“This is backed by Federal Inland Revenue Service’s testimonial naming the company one of the most tax compliant organisations in Nigeria for the year 2021.

“The company is committed to paying all taxes due and on time and has zero tolerance for non-compliance. The above is to clarify the information previously released by MTN Nigeria.”

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