Withholding tax otherwise known as advance corporation tax is an advance tax on income deducted at source.
Under the Nigerian Tax laws, the payers of sums due to another person are required to withhold certain amount from such sums as tax and pay the net a mount to the payee. The amount withheld is known as withholding tax and it is payable to the relevant tax authority.
The applicable rates depend on the nature of transaction and are We are simply required to apply the relevant rate on the amount payable to the payee and remit to the relevant tax authority.
Please Note that the relevant tax authority for company is the Federal Inland Revenue Service while for individual or enterprise is the State Internal Revenue Service where the person is resident