Mr Haruna Abdullahi, the Acting Executive Chairman, Federal Capital Territory Internal Revenue Service (FCT-IRS), says plans are ongoing to enforce withholding tax (WHT) on rent.
According to Abdullahi, the aim is to ensure that the Service increases its sources of revenue generation in order for it to meet its revenue target for the year.
Abdullahi said this on Thursday in Abuja at a joint taxpayer education and enlightenment campaign organised by FCT-IRS in collaboration with the Chartered Institute of Taxation of Nigeria.
UNIC, MAIN organize first sustainable development training for journalists in Kano
FCT traffic services impound 48 vehicles from illegal parks, car marts
He said the campaign was aimed at enlightening people on FCT-IRS and CITN tax partnership.
According to him, rental income is earned from the rent received for using property or houses.
“FCT-IRS is doing a lot in terms of public enlightenment and engagement in the city to get taxpayers to understand their responsibilities.
“There are new initiatives in terms of collecting more revenues for the city. We will do more of engagement relating to collecting money for withholding taxes on rent.
“Withholding taxes are supposed to be deducted while paying rent and paid to the appropriate tax authority. Its at the rate of 10 per cent.
“We will focus largely on monitoring the deduction and remittance of taxes from rentals paid to the owner of the property and their agents,’’ he said.
He said that the service would also embark on massive enumeration and registration of business premises to expand its tax-net.
The acting executive chairman said that the Service would collaborate with relevant stakeholders within FCTA to identify individuals that sold or exchanged capital asset for profit making.
Also speaking, Adesina Adebayo, CITN President, represented by Samuel Agbeluyi, vice president, CITN, said taxation of partnership business in Nigeria and recent changes in tax legislation were key issues.
Adebayo said that with the dynamic nature of taxation in Nigeria and the global space, we must keep abreast with latest development.
“The need to engage taxpayers on a continuous basis is very important because they are important stakeholders in the tax system.
“The institute has a major role to play in bridging the gap in terms of understanding, capacity building and relationship between the taxpayers and tax authorities,’’ Adebayo said. (NAN)
