Nigeria: Withholding tax rate for buildings | KPMG | GLOBAL
Share with your friends

Nigeria: Withholding tax rate, 5% on payments for buildings, construction

Nigeria: Withholding tax rate for buildings

Regulations publicly available in January 2017 have effectively reversed a reduction in the withholding tax rate that applies with respect to payments for all aspects of building, construction, and related activities (but not to survey, design and delivery activities).


Related content

The withholding tax rate is 5% (effective 9 November 2016) and not 2.5% as had been scheduled. 

KPMG observation

The notice [PDF 402 KB] about the withholding tax rate was published in the official gazette of 23 November 2016 but only became publicly available in January 2017. This is why taxpayers are being directed to apply the withholding tax rate of 5% as of the November 2016 date. However, the delay in making the gazette publicly available raises concerns about how taxpayers, who may have applied withholding tax at the rate of 2.5% and made payments to vendors on this basis, are to account for the shortfall in the withholding tax.


Read a January 2017 report [PDF 102 KB] prepared by the KPMG member firm in Nigeria

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal