PwC secures landmark decision- sales in the ordinary course of business not subject to WHT

Click here to unsubscribe. pwc.com/ng   PwC secures landmark decision- sales in the ordinary course of business not subject to WHT Dear Subscriber The Companies Income Tax (Rates, Etc., of Tax Deducted at source) Regulations 1997 (WHT Regulations) requires that tax is withheld on payment for certain qualifying services. The rates are either 2.5%, 5% or 10% depending on the specific service. The WHT Regulations provide that "all types of contracts and agency arrangements other than sales in the ordinary course of business" are subject to WHT at 5%. This means that sales in the ordinary course of business would not be subject to WHT. However, the WHT Regulations do not define what amounts to "sales in the ordinary course of business" (SITOCOB). Interestingly, the Federal Inland Revenue Service (FIRS) puts pressure on taxpayers to deduct WHT on all payments whether or not they are in respect of "sales in the ordinary course of business". This imposes a practical burden on low margin businesses (like trade and manufacturing). To avoid assessments and penalties from FIRS, businesses that make such purchases impose WHT on such payments. For more insights, click the download button below to read the full publication. Download here Contact Us Kenneth Erikume Partner kenneth.y.erikume@pwc.com Folajimi Akinla Manager folajimi.akinla@pwc.com   Follow us         You're receiving this email because you are listed as a client of PwC or have opted to subscribe to one or more of our email distributions. If you'd prefer not to receive updates, you have the right to withdraw your consent at any time. © 2001 - 2020 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Legal Disclaimer | Site Provider | Privacy Statement

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