As a result of the low profit margin in the construction industry, resulting in perpetual excess WHT credits, the former minister of finance granted a reduction in WHT rate from 5% to 2.5%. The amendment to the WHT Regulation was issued through an official gazette with an effective date of 1 January 2015. The reduced rate was applicable to all aspects of building, construction and related activities (excluding surveys, designs and deliveries).
This reduced rate has now been reversed by the current minister of finance on the recommendation of the FIRS.
Read our tax alert for more Download PwC Tax Alert_Withdrawal of reduced WHT rate on construction_Sep 2016
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