Withholding Tax (WHT)

Withholding Tax (WHT)
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Withholding Tax (WHT)

WITHHOLDING TAX (WHT)

  • Introduction

Scope/Companies covered

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.

 

Enabling laws

Withholding tax regulations and other provisions in CITA, PPTA and PITA.

 

Recent Amendments –

  1. WHT on technical, management and consultancy fees offered outside Nigeria shall be final.
  2. 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

Explanatory Note on WHT

SIAO WHT CALCULATOR

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At SIAO, we believe that the approach is as important as the service. We have developed an approach to briefs and projects that works splendidly for us and for our clients, and that ensures excellent results.

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