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Nigeria: Withholding tax, VAT on commissions and rebates for distributors, dealers, agents

Nigeria: Withholding tax, VAT on commissions, rebates

The Federal Inland Revenue Service (FIRS) today, 14 August 2019, issued a notice concerning the withholding tax and value added tax (VAT) treatment of “compensation” made by companies to distributors, dealers, and agents.


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The FIRS notice defines “compensation” to include commissions, rebates, and similar payments made in the form of cash, credit notes or goods-in-trade.

The notice is intended to address the perception that certain companies are not complying with the withholding tax and VAT rules for these commissions, rebates, and other payments.

Read an August 2019 report prepared by the KPMG member firm in Nigeria

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