- The National Information Technology Development Fund is paid and credited into the Fund established under subsection (1) part five of the NITDA Act 2007.
- Payment of this levy commenced from 24 April 2007.
- A levy of one percent (1%) of the profit before tax of companies and enterprises with an annual turnover of One Hundred Million Naira (N 100,000,000) and above and such paid by the companies shall be tax deductable.
- The FIRS under the National Information Technology Development Agency (NITDA) is authorized to access,
collect the levy and remit to the fund established by the NITDA to create a framework for the planning, research, development, standardization, application, coordination, monitoring, evaluation and regulation of Information Technology practices and activities in Nigeria systems.
- Their role is to develop, regulate and advise on Information technology in the country through regulatory standards, guidelines and policies.
- The levy is due and payable within 60 days after the Federal Inland revenue Service (FIRS) has served notice to the assessment on a company.
- Where a levy is not paid within the time specified, the Federal Inland Revenue Service shall serve the company, a demand note for the unpaid tax plus a sum which is equal to 2 percent of the levy. Any company, agency or organization that fails within two months after a demand note, to pay the levy commits an offence and is liable on conviction to a fine of not less that N 1,000,000.00.
- According to the NITDA establishment act, the levy applies to the following companies:
- GSM Service providers and all Telecommunication Companies;
- Cyber Companies and Internet Providers;
- Pensions Managers and Pension related Companies;
- Banks and other Financial Institutions;
- Insurance Companies.