M
mrsam
Guest
What is Withholding Tax?
Withholding Tax (WHT) is an advance payment of income tax.
What is the Rate of Withholding Tax for companies and individuals on transactions?
There are varying rates of WHT ranging from 2.5% to 10% for companies and 5% to 10% for individuals depending on the transaction.
What is the due date for filing WHT returns?
On or before the 21st day of the month following the month in which the deductions were made.
Who are the collecting agents for WHT?
All organisations or bodies making payments to suppliers of goods and services. They are required to make deductions of Withholding Tax and remit to the Tax Authority as payments are being made to suppliers/vendors.
What are the relevant documents required for filing WHT returns?
i Evidence of payments such as bank teller, e-ticket, e-acknowledgement etc. from an FIRS designated revenue collecting bank.
ii. Schedule of WHT deducted indicating the: Name of supplier/vendor, Taxpayer Identification Number (TIN) of company or individual (supplier/vendor) from which the tax was withheld and the related amount.
How do you pay WHT?
WHT is paid into the Federation Account through all FIRS designated revenue collecting banks.
Source: Federal Inland Revenue Service
