Nigeria: Withholding tax rate reverts to 5% | KPMG | GLOBAL

Nigeria: Withholding tax rate for construction-related payments, reverts to 5%

Nigeria: Withholding tax rate reverts to 5%

The Federal Ministry of Finance approved recommendations from the Federal Inland Revenue Service to withdraw and revoke a rate reduction for withholding tax under the companies income tax rules.


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The withholding tax regulations, effective 1 January 2015, reduced to 2.5% (from 5%) the withholding tax rate applicable to payments in respect of all aspects of building, construction, and related activities (excluding survey, design and deliveries). Once the regulations are officially revoked (on publication in the official gazette), the withholding tax rate applicable to payments in respect of building, construction and related activities, will revert to 5%. However, the reduced rate of 2.5% will continue to apply until the publication of this notice of revocation. 


Read a June 2016 report [PDF 60 KB] prepared by the KPMG member firm in Nigeria

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