By Financescape
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.
