₦airaland Forum

Hello everyone, I know there are taxes accompanied by federal government contracts awarded to companies.....can someone enlighten me more on these taxes as per construction and purchase contracts are concerned.....what are the taxes am I as a contractor expected to pay n which of the taxes are being paid automatically before the contract award from the contract lump sum n under what condition is that ?

Thank you

1 percent stamp duty
5 or 10 percent whitholdiing tax as applicable
7'5 percent VAT
5 percent retention fee

All these are deducted from the source .
However wiitholding tax is recovrable and can be used to off set your tav liability while 5 percent retention fee would be paid back to you if there's no defect in the execution of the contract after 6 month or a year of the contract .
Congratulations on your new contract .
Endeavour to patronize us for your audit and filling of annual returns.
Blessed day
Congratulations

Buharidgeneral:
1 percent stamp duty
5 or 10 percent whitholdiing tax as applicable
7'5 percent VAT
5 percent retention fee

All these are deducted from the source .
However wiitholding tax is recovrable and can be used to off set your tav liability while 5 percent retention fee would be paid back to you if there's no defect in the execution of the contract after 6 month or a year of the contract .
Congratulations on your new contract .
Endeavour to patronize us for your audit and filling of annual returns.
Blessed day
Congratulations

Thank you brother for the vivid explanation, that's what I've been looking for

But is there any contract categories that are exempted from paying VAT... I'm hearing things like that, wanna be sure

Timberwolves:
Thank you brother for the vivid explanation, that's what I've been looking for

But is there any contract categories that are exempted from paying VAT... I'm hearing things like that, wanna be sure

I doubt if any except agricultural produce

Buharidgeneral:
I doubt if any except agricultural produce

Ok thanks, you gave me some clarity, really appreciate