What Is the Percentage of Withholding Tax in Nigeria

3.8 Is there a withholding tax on rent payments to non-residents? I like, result of finding exactly what I was looking for. You`ve finished my four-day hunt! God bless you, man. Have a nice day. In summary, the WHT improves the collection efforts of tax authorities and ensures that revenues are generated in advance. The deduction of withholding tax does not relieve any business or person of the obligation to pay income tax. 3.1 Is a withholding tax levied on dividends paid by a local company to a non-resident? Good writing, but quick question pls. Suppose I issue an invoice with an order value of N50,000 and a VAT of N2,500. The total value of the invoice is N52,500. The customer paid N47.500 (which corresponds to a deduction of 10% WHT on the value of the order). My question is: since the customer deducted the withholding tax and gave me the WHT credit, do I still have to transfer the VAT of N2,500 to FIRS? I think it will be double taxation if I transfer the VAT of N2,500 from my N47,500 again. Please help.

Thank you yes. Dividends on listed REIT securities are exempt from withholding tax. In addition, VAT and capital gains tax do not apply to the sale of REIT securities. Good article, please find out how much withholding tax is deducted from an advance commission for a law firm that provides legal services to a company? Yes, the 10% withholding tax is deducted from the interest that a Nigerian company pays to a non-resident company. However, keep in mind that the interest payable on the following loans is tax-exempt: less grammar and jargon. Just to say what it is, what someone wants to know. Thank you The law that regulates or regulates payment is the Business Income Tax Act (CITA) and the Income Tax Act (PITA). Information Circular No. 2006/02, issued by the Federal Inland Revenue Services (FIRS) in 2006, provides a more in-depth overview of the practice of withholding tax in Nigeria.

I found this article on withholding tax very useful. I think there is a high risk of double taxation in this tax category. The other problem is the technical issue associated with the determination of the ordinary course of business, particularly for service providers. I think that if the other tax amounts are well controlled and executed, there would be no need for withholding tax and risk of double taxation, for example via WHT and VAT on the same service 2.4 Is it still fully refundable by all companies? If not, what are the relevant limitations? Good evening Nairametrics. If we hire contractors to carry out construction or repair work on buildings and related activities, what will be the amount of the withholding tax? For example, the amount of their bill is 100,000 naira, which already includes 70,000 for materials and 30,000 for labor/processing. How would we deal with this in terms of calculating the withholding tax? Thank you very much. Withholding tax (WHT) covers the following transactions or areas: 6.5 Would a withholding tax or similar tax be levied as a result of profit shifting by the branch? To submit the withholding tax, you will need the following documents: If I pay the withholding tax, do I please have to pay the tax required by a local board? Suppose a company makes a profit at the end of its fiscal year, pays corporate tax on that profit, and then a percentage of the after-tax profit is paid as a dividend to its shareholders. This dividend is no longer taxed because it has already been deducted before or at source.

Exactly what really motivated you to “A-Z Withholding Tax in Nigeria – Beginner`s Guide for Small Businesses| to create UGOMETRICS BLOG”? Personally, I really loved the post! Thank you -Anita yes. Other taxes include capital gains tax levied on eligible transactions based on the type of transaction of 10%, withholding tax and indirect taxes such as duties, which include import and export duties, excise duties and stamp duties. Thank you for your lessons. My question is: If I have a company that pays its taxes to the state government and my owner is a limited liability company that pays taxes to FIRS, will I still deduct the withholding tax on internal tax services? Thank you thank you for the info. Please indicate what to write to a customer who deducts the tax on the total invoice and not on the administration fee. Thank you A withholding tax is essentially an early and indirect source of taxation, which is deducted from the taxpayer`s bills at source. Its main objective is to include in the tax network as many taxpayers who have been able to evade tax. Withholding tax rates are usually 10% or 5%, depending on the type of transaction and the tax collection authority (which can be a federal tax office or the state tax office).

5.4 Does your jurisdiction impose a withholding tax on the proceeds of the sale of a direct or indirect stake in local assets/shares? 2.2 Do you have a value added tax (VAT) or similar tax? If so, at what price or at what price? Please note any rate reductions in response to COVID-19. Okay, the WHT credit is a document issued by a competent tax authority to a beneficiary as proof that the withholding tax has been deducted from their business. It is usually issued to the company that deducted the WHT from your bill, as you will have to make an effort to always go back and apply for it. Indeed, without them, you will not be able to recover the money that has been deducted from your bill. Please, what is the correct WHT treatment on the invoice paid by the supply company, with all the legal deductions that need to be transferred by the supply company? Too bad, there`s not much you can do other than complain and then blacklist the customer. However, the tax administration provides for penalties of 200% per year of unpaid tax for companies and 5,000 naira per year for individuals. That is, if your customer does not transfer N100k to the withholding tax that has already been deducted from your invoice, their penalty will be to pay N200k extra. The customer is also required to obtain proof of the transfer in the form of a withholding tax credit on behalf of the supplier. The supplier can now use the tax credit so as not to reduce the income tax payable at the end of their tax year. If a service provider has granted a certain percentage of the rebate to a buyer, what value is subject to WHT? Is it gross value or net worth? A withholding tax of 10% is deducted from the dividend paid by a Nigerian company to a non-resident company. However, the rate is 7.5% for a non-resident company based in a country that has entered into a DVB-T with Nigeria. Effects of withholding tax on foreign transactions 4.4 Are there tax consolidation rules? Does this allow you to alleviate the losses of foreign affiliates in your jurisdiction? It`s quite rich and the knowledge is expanding.

Please provide the relevant tax laws and date of WHT legislation in Nigeria If I am not the buyer or supplier and WHT has been deducted by the buyer, will I still pay taxes on my commission received from the supplier? 10.2 Has your area of competence adopted legislation against BEPS that goes beyond the OECD recommendations? These companies benefit from an exemption from payment of Nigerian taxes due to their status as companies operating outside the country. Even if they make purchases outside of free trade zones, it is assumed that the companies they deal with are located in Nigerian customs territory and that these transactions are also not subject to Nigerian taxes. 10.5 Has your jurisdiction taken unilateral steps to tax digital activities or to broaden the tax base for digital presence registration? 9.2 Is special disclosure required for tax avoidance schemes or transactions that match the characteristics associated with cross-border tax planning? Yes, they include the Education Tax, the Oil Gains Tax (“PPT”) and certain levies such as the Nigeria Social Insurance Trust Fund (“NSITF”), the Industrial Training Fund (“ITF”), the National Tax for information technology development (“NITDL”) and the Nigerian Police Trust Fund (“NPTF”). 7.2 Is a tax levied on the receipt of dividends by a local company by a non-resident company? Yes. VAT is levied at the rate of 7.5% on the value of goods and services in Nigeria. .