April 2, 2025

The Federal Inland Revenue Service (FIRS) collected N2.52 billion in withholding tax during the fourth quarter of 2024, according to data from BudgIT’s GovSpend platform. Withholding tax is an advance tax deducted at the source from certain payments made to individuals or companies. It applies to transactions such as construction contracts, professional services, dividends, interest, royalties, and rent. Tax rates vary depending on the type of payment, with rents, dividends, and interest taxed at 10%, while royalties are taxed at 5%. Notable Withholding Tax Remittances Government ministries, departments, and agencies across various sectors—power, healthcare, works, and security—made significant remittances, including: For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.