The Federal Ministry of Finance has issued a Regulation reversing the Withholding Tax (WHT) rate for all aspect of building, construction and related activities to the old rate of 5%.
The commencement
date of the Regulation titled “Companies Income Tax (Rates e.t.c of Tax
Deducted at Source (Withholding Tax)) Amendment Regulation, 2016” is 9th November 2016.
It can be recalled
that in January 2015, the Federal Ministry of Finance reduced the rate of WHT
for all aspect of building, construction and related activities from 5% to 2.5%
through the Companies Income Tax (Rates e.t.c. of Tax Deducted at Source
(Withholding Tax)) Amendment Regulation 2015.
The new Regulation
however, does not affect transactions that were carried out before the coming
into effect of the Regulation. From the provisions of the Regulation
transactions carried before 9th November, 2016 when the 2015 Regulation was
applicable would still be assessed at the rate of 2.5%.
Companies engaged
in the above services are advised to be guided by this Regulation.
Read the article here: https://docs.google.com/document/d/1KQvRCQBH3FM2RVv2yyjGpf3Xf7myF9wmmrq3JxNZmE8/edit?usp=sharing
Download the Amendment
Regulation here: https://dochub.com/taxmasterstraining/9PO4aX/tm_tax_laws_wht_amendment_regulation_2016?dt=zfllod1mi0pfsgjd
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