The Federal Inland Revenue Service (“FIRS”) on 11 May 2022 issued a circular titled “Information Circular on the Claim of Tax Treaties Benefits and Commonwealth Tax Relief in Nigeria”. Sequel to the circular, a public notice on the application of withholding tax (“WHT”) on dividends, interests, and royalties paid by Nigerian residents to recipients who are tax-resident in countries with which Nigeria has concluded and executed Double Taxation Agreements (“DTAs”) was issued (jointly, the “DTA Circulars”).
According to the DTA Circulars, the application of a uniform WHT rate of 7.5% on dividends, interests, and royalties paid by Nigerian residents and beneficially owned by residents of Nigeria’s treaty partners will be discontinued effective from 1 July 2022.
