Have you validated your company’s unutilized withholding tax (WHT) credit note position with the Federal Inland Revenue Service (FIRS)?
Withholding tax is an advance payment of income tax. The amount withheld will be remitted to the relevant tax authority. Thereafter the WHT credit note can be used to offset an income tax liability.
Taxpayers must submit their unutilized WHT credit notes up to May 31, 2020 to FIRS. The validation exercise runs from April 1 to June 30, 2021. Effective July 1, 2021, FIRS will not recognize any WHT credit note that is not validated. FIRS has launched an automated tax administrative solution and wants taxpayers to reconcile the WHT credit records. A copy of the memo is here.
The new deadline is 31 July 2021. To view the full memo, click here.
The post was updated on 30 June 2021.