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-filing of returns

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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