(i) Main features of Withholding Tax:

• Payment of Withholding Tax is statutory for the payer.
• Withholding tax credit can only offset tax liabilities for the income year to which it relates, not for previous years.
• It is treated as an advance payment of income tax and can be credited against the final income tax liability of the same tax year.
• Withholding Tax is the final tax on franked investment income.

(ii) Relevant tax authorities in relation to Withholding Tax:

• Federal Inland Revenue Service for corporate entities.
• State Internal Revenue Service for individuals.
• Federal Inland Revenue Service for residents of the Federal Capital Territory, members of the Nigerian Armed Forces, Police, and Nigerian Foreign Service.

(iii) Contents of a Payment Schedule for the remittance of Withholding Tax:

• Name and address of the taxpayers who suffered deductions.
• Nature of activities/services rendered.
• Period covered.
• Tax Identification Number (TIN).
• Gross amount payable.
• Tax rate applied.
• Amount of tax withheld.
• Balance paid to the taxpayer.
• The contract for which returns were made.
• Date and cheque number of paymen