PRESENTATION ON WHT

WITHHOLDING TAX (WHT) FINANCE DEPARTMENT. ( ESEJI EBUKA VINCENT).

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[image]. Efficient shore solutions. [image] WITHOLDINGTAX (WHT) Series 1.

[image]. Efficient shore solutions. [image] What is Withholding Tax (WHT)? WHT is not a form of Tax and is not covered in any separate law. WHT is an advance form of income tax, it is deducted at source and remitted to the government on behalf of the vendor. It is a form of tax credit, that can be used to reduce future tax payable. All companies are obliged by the law to deduct WHT on their transactions with qualifying parties. ***Deducting WHT from an invoice is not a matter of whether VAT was charged!.

[image]. Efficient shore solutions. [image] Transactions not liable to WHT Sales In the ordinary course of business (t please note that provts•on of servxes is excluded) Reimbursable costs Over the counter transactions Dual relationship between parties in a business Sale of raw materials for manufacturing Insurance premium (but commtss•on made by insurance brokers are subject to WHT.

[image]. Efficient shore solutions. [image] Factors to consider in determining the WHT for any transaction. The Applicable WHT rate depends on: • natureftype of transactions • residency of the vendor • status of the vendor —Incorporated or unincorporated (Partnership, sole trader, ventures etc).

[image]. Efficient shore solutions. [image] WHT Rate Table Types of payment Mdends. interest. and rents rectors fees ire pt equi alties . technical. service fees anagement lees ruction (roads. WHT for companies 10 10 10 10 10 2.5 5 WHT for individuals 10 10 10 5 5 other than sales in the ord course of business.

[image]. Efficient shore solutions. [image] In summary, WHT is an important tax requirement in Nigeria that helps to ensure that non-resident individuals and companies pay taxes on income earned in Nigeria and that residents of Nigeria pay taxes on income earned from sources within the country. It is important for individuals and companies to understand their tax obligations and comply with WHT requirements to avoid penalties and legal action..

[image]. Efficient shore solutions. [image] To comply with the WHT requirements in Nigeria, individuals and companies need to understand their tax obligations and ensure that they deduct and remit the correct amount of WHT to the FIRS. Failure to comply with WHT requirements can result in penalties and fines, and may also esult in legal action being taken against the individual or company..

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