Withholding Tax (WHT)
WITHHOLDING TAX (WHT)
It is applicable on all relevant transactions except those exempted like imported goods; sales in the ordinary course of business; direct purchases from the manufacturers; exempted income; etc.
Rate of Tax
The rate is between 5% and 10% depending on the nature of transaction.
Withholding tax regulations and other provisions in CITA, PPTA and PITA.
Recent Amendments –
- WHT on technical, management and consultancy fees offered outside Nigeria shall be final.
- WHT on construction contract is now 5%
- Filing obligations
21st day following the month of transaction for transactions with Corporate entities and 30th day of the following month for transaction involving individuals.
- Associated Penalties
- Non-payment of taxes
Penalties at 10% and interest at the prevailing Market ranging from 19% – 21%.
Kindly click the link below to download the Explanatory Note on WHT