All electrical firms, including Generation and Distribution firms (GenCos and DisCos), have been classed by the federal government as being free from having to pay withholding tax in the nation.
This was stated in the newly revised Withholding Tax regulation document that our reporter saw and which was signed by Wale Edun, the Minister of Finance.
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The paper states that the gas and electricity firms are free from withholding tax since they fall under the categories of “manufacturing” and “production.”
The Federal Inland Revenue Service (FIRS) states that withholding tax (WHT), which is withheld at rates ranging from 5 to 10 percent depending on the transaction, acts as a prepayment of income tax.
