The WHT Regulations provide that “all types of contracts and agency arrangements OTHER THAN sales in the ordinary course of business” are subject to WHT at 5%. This means that sales in the ordinary course of business would not be subject to WHT. However, the WHT Regulations do not define what amounts to “sales in the ordinary course of business”.

Before November 30, 2020, taxpayers were under pressure to deduct WHT on all payments whether or not they are in respect of “sales in the ordinary course of business”. This created huge burden on low margin businesses for example those in manufacturing and trade. The Tax Appeal Tribunal has finally resolved this long standing ambiguity.

Barr, Micheal Dugeri, shared his insights and perspectives on the FMCG SCOOP. 

Remain business conscious and legally mobile.

You can connect with us via:

email: [email protected] 

IG: @legallymobile

Host: Vivian Okoh-Olutunfese