FIRS Public Notice On Deduction At Source of WHT And VAT On Compensation Paid By Principal Companies

Proshare

Thursday, August 15 2019  09:53 AM / KPMG Nigeria, Wole Obayomi / Header Image Credit: Legit.ng

 

The Federal Inland Revenue Service (FIRS) issued a Public Notice today, 14 August 2019, directing taxpayers, particularly companies in the Fast Moving Consumer Goods sector, to deduct and remit withholding tax and value added tax on the “compensation” due to their distributors, dealers and agents.  

The FIRS defines “compensation” to include commission, rebates, etc., granted in the form of cash, credit note or goods-in-trade. 

The FIRS claimed, in its Public Notice, that some companies have not been complying with the provisions of the Companies Income Tax (Rates, etc. Deduction at Source (Withholding Tax) Regulations S.1 10 1997 (sic) and Paragraph 3.8 of its Information Circular No. 2006/02 of February 2006. 

The FIRS, therefore, noted that it would commence monitoring of compliance with its directive by relevant companies.


Proshare Nigeria Pvt. Ltd.


Related News

1.       NSE to Resumes Charging VAT on Commissions Applicable to Capital Market Transactions

2.      Tax Tribunal Rules That A Taxpayer Can Object To A Defective Assessment Even If It Has Been Paid

3.      Re-Introduction of VAT on Market Transaction Charges Take Effect From July 25th, 2019

4.      Tariff Hikes and Rising Customs Revenue

5.      Court of Appeal Affirms the Applicability of VAT on Services Rendered by a Non-Resident Company

6.      TAT's judgement on Employer's Obligation to Remit Tax on Voluntary Pension contribution Withdrawals

7.      Tax Appeal Tribunal Rules That Excess Dividend Is Liable To Tax At 30%

8.     Nigeria: A Nation Pauperised by Tax Evasion

9.      Countdown Begins to Expiration of VAT Exemption on Stock Exchange Transactions

10.  COA Upholds FHC’s Decision On The Applicability Of VAT To Services Provided Outside Nigeria

 

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP