The Federal Inland Revenue
Service (the Service) recently issued a public notice that all compensations
due to distributors and agents by whatever means of payment, either by cash,
credit note and goods-in-trade must be subjected to WHT/VAT at the appropriate
rate and be remitted to FIRS accordingly on or before 21st of every
month. This is line with Paragraph 3.8 of Federal Inland Revenue Service Information Circular No.
2006/02 (Feb 2006)
This notice is as a result of
non-compliance in deducting WHT/VAT from compensation paid to distributors and
agents by all companies, particularly those in the Fast Moving Consumer Goods (FMCG)
We urge all companies to comply
with the public notice as the Service will commence monitoring the compliance
levels of relevant companies.