(i) The competent authorities of the States shall by mutual agreement settle the mode of application of the reductions and exemptions from tax in the State of source given by Articles 10, 11 and 12.
(ii) Where tax has been levied at source in excess of the amount of tax chargeable under the provisions of Articles 10, 11 and 12, applications for refund of the excess amount of tax have to be lodged with the competent authority of the State having levied the tax, within a period of three years after the
expiration of the calendar year in which the tax has been levied.
VI. AD ARTICLE 13
It is understood that the terms corporate organisation, reorganisation, amalgamation, division or similar transaction refer to a transfer of shares within a group of associated enterprises. In that case the shares will be evaluated for the transferee at the book value of the transferor.
VII. AD ARTICLE 16
It is understood that “bestuurder” or “commissaris” of a Netherlands company means persons who are nominated as such by the general meeting of shareholders or by any other competent body of such company and are charged with the general management of the company or the supervision thereof respectively.
VIII. AD ARTICLE 24
It is understood that in both States, interest, royalties and other disbursement paid by an enterprise of one of the States to a resident of the other State, for the purpose of determining according to its tax legislation the taxable profits of such enterprise, are deductible in the same way as if they had been paid to a resident of the first-mentioned State.
In witness whereof the undersigned, duly authorised thereto, have signed this Agreement.
Done at Lagos this 11th day of December, 1991, in duplicate, in the English language.
For the Government of the Federal Republic of Nigeria:
Alhaji Abubakar Alhaji.
For the Government of the Kingdom of the Netherlands:
ERIC T.J. KWINT.
Companies income tax (rates, etc., of tax deducted at source (withholding tax)) regulations ARRANGEMENT OF REGULATIONS
1. Rate of tax to be deducted at source.
2. Deduction not to be regarded as extra cost.
3. Deduction to be receipted.
4. Remittance of tax.
5. Offences.
6. Interpretation.
7. Citation and commencement.
SCHEDULE
COMPANIES INCOME TAX (RATES, ETC., OF TAX DEDUCTED AT SOURCE (WITHHOLDING TAX)) REGULATIONS
[S.I. 10 of 1997.]
under section 63 [1st January, 1995]
[Commencement.]
1. Rate of tax to be deducted at source
(1) The rate at which a person as defined in paragraph (2) of this regulation shall deduct tax under the Act from a payment made by him for an activity or service listed in Column 1 of the Schedule to these Regulations shall be as set out in Column 2 of the Schedule.
(2) For the purposes of paragraph (1) of this regulation—
“person” includes a body corporate and unincorporate, a Government Ministry, Department and agency, a local government, a statutory body, a public authority and any other institution, organisation, establishment and enterprise which operates as Pay-As-You-Earn scheme.
2. Deduction not to be regarded as extra cost
A deduction made from a payment shall not be regarded as an additional cost of the contract to be included in the contract price but as tax due on the payment.
3. Deduction to be receipted
(1) A person who deducts tax from a payment shall issue a receipt for the tax so deducted and a statement containing the following information, that is—
(a) the name and address and the Federal Inland Revenue Service reference number of the person from whom the tax was deducted;
(b) the nature of activity or service in respect of which the payment was made;
(c) the gross amount paid or payable;
(d) the amount of tax deducted; and
(e) the period to which the payment relates.
(2) Where a company from whom tax is deducted claims tax credit for the tax so deducted it shall submit the receipt issued to him under paragraph (1) of this regulation to the relevant tax authority as evidence of the tax deducted.
4. Remittance of tax
(1) A person who deducts tax from a payment shall, when the payment is credited or paid, which ever is earlier, submit, to the relevant office of the Federal Inland Revenue Service, the evidence of remittance made to the designated branch of the bank zoned to that office, of the tax deducted.
(2) The submission shall be accompanied with a statement containing the following information—
(a) the name, address and Federal Inland Revenue Service reference number of the person from whom the tax was deducted;
(b) the nature of the activity or service in respect of which the payment was made;
(c) the gross amount paid or payable;
(d) the amount of tax deducted; and (e) period to which the payment relates.
5. Offences
A person required to deduct tax at source under the Act and under these Regulations who fails to do so or having deducted tax fails to pay the tax to the Federal Inland Revenue Service within thirty days from the date the tax was deducted or the time the duty to deduct the tax arose is guilty of an offence and liable on conviction to the penalty set out in section 64 of the Act.
6. Interpretation
In these Regulations, unless the context otherwise requires—
(a) “the Act” means the Companies Income Tax Act; and [Cap. C21. L.F.N.]
(b) a word or an expression used in these Regulations has the meaning assigned to it in the Act.
7. Citation and commencement
These Regulations may be cited as the Companies Income Tax (Rate, etc., of Tax Deducted at Source (Withholding Tax)) Regulations 1997 and shall be deemed to have come into force on 1 January 1995.
SCHEDULE [Regulation 1.]
Payments from which tax is to be deducted and rate of tax
Column 1 Column 2
Payments in respect of Rate at which tax is to be deducted
1. All aspects of building, construction and related activities 5%
2. All types of contracts and agency arrangements, other than sales in the ordinary course of
business 5%
[S.I. 44 of 2000.]
Column 1 Column 2 Payments in respect of Rate at which tax is to be deducted
3. Consultancy and professional services 10%
4. Management services 10%
5. Technical services 10%
6. Commissions 10%