The Personal Income Tax
Decree No. 104 of 1993, (as amended) subject activities and services to withholding
tax, where during a transaction in any of the specified activities or services,
a payment from one person to another, the person making the payment is expected
to deduct tax at the applicable rate and remit same to the relevant authority. This should be done not later than 30 days after deduction.
These activities and services include rent, construction, dividend, royalties, commission,
professionals, technical and consultancy fees.
It is an advance payment of tax (at 10%) of which individuals and organisations
are entitled to demand a withholding tax credit note.
Rent, dividend, interest etc, will continue to be subjected to deduction at source
based on applicable rates below:
The agents of government for deduction and remittance of withholding taxes include
Government Departments, Parastatals, Statutory bodies, Institutions and other establishments
approved for the operation of PAYE Scheme.
Withholding tax of capital must be remitted thirty (30) days from the day the tax
is withheld
DOCUMENTS FROM THE ESTABLISHMENT
Submit to the tax office a schedule containing the following information
i.) Name and address of the agency remitting the deduction(Withholding
Tax)
ii.)The period of deduction
iii.) Names and address of the recipients/beneficiaries from
whom Withholding Tax had been deducted.
iv.) The nature of the transactions viz, Contract (supply, construction,
etc), dividend, rent, interest, royalties, director's fees etc.
v.) The total value or total amount of the transaction involved (Gross payment)
vi.) The applicable rate of withholding tax for each transaction
vii.) The amount of withholding tax deducted
Submit to the tax office a covering letter indicating the period of
payment, the particulars of the cheque issued for the payment and tellers relating
to the payment.
