The Federal Government has reduced the withholding tax (WHT) rate applicable to all aspects of
building, construction and related activities (excluding survey, design and deliveries), from 5%
to 2.5%. The reduction was made via the Companies Income Tax (Rates etc., of Tax Deducted at
Source (Withholding Tax)) Amendment Regulations, 2015 issued by the Coordinating Minister
for the Economy and Minister for Finance.
The Regulations have a commencement date of 1 January 2015. In effect, payments made in
respect of building, construction and related activities from this date, will be subject to WHT at
the rate of 2.5%, rather than the previous rate of 5%. However, WHT at 5% will continue to be
deducted on payments relating to survey, design and deliveries.
For further enquiries on the above, please contact:
Victor Onyenkpa
NG-FMTAXEnquiries@ng.kpmg.com
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