FCT-IRS to enforce withholding tax on rent —acting chairman

Mr Haruna Abdullahi, Acting Chief Executive of the Federal Capital Territory Internal Revenue Service (FCT–IRS), has stated that plans are underway to enforce the withholding tax (WHT) on rent.

According to Abdullahi, the goal is to ensure that the Service increases its sources of income generation to meet its revenue target for the year.

Abdullahi said this Thursday in Abuja at a joint taxpayer education and enlightenment campaign organized in collaboration with Nigeria‘s Chartered Institute of Taxation.

He said the campaign was aimed at educating people about the FCT-IRS and CITN tax partnership.

According to him, rental income is obtained from the rent received for the use of properties or houses.

“FCT-IRS is doing a lot in terms of public information and city engagement to get taxpayers to understand their responsibilities.

“There are new initiatives in terms of raising more revenue for the city. We will make more commitments related to raising money for rental tax withholding.

“Withholding taxes are supposed to be deducted when paying the rent and paid to the appropriate tax authority. It is at the rate of 10 per cent.

“We will be largely focused on monitoring the deduction and remission of taxes from rents paid to the property owner and their agents,” he said.

He said the service would also embark on mass enumeration and registration of business premises to expand its tax net.

The interim CEO said the Service would collaborate with relevant stakeholders within the FCTA to identify individuals who have sold or traded capital assets for profit.

Also speaking, Adesina Adebayo, President of CITN, speaking on behalf of her Vice President, CITN, said that the taxation of business companies in Nigeria and recent changes in tax law were key issues.

Adebayo said that with the dynamic nature of taxation in Nigeria and the global space, we need to stay abreast of the latest developments.

“The need to engage taxpayers on an ongoing basis is very important because they are important stakeholders in the tax system.

“The institute has an important role to play in bridging the gap in terms of understanding, capacity building and the relationship between taxpayers and tax authorities,” Adebayo said.