PLATEAU STATE DEMANDS 10% WITHHOLDING TAX ON RENT FROM JOS RESIDENTS

By Nnabugwu Chizoba

Rt. Hon Simon Bako Lalong, Gov Plateau State

The implementation of Withholding Tax on rent has began in Plateau State. This follows the issuance of demand notices by the Plateau State Internal Revenue Service (PSIRS), to rent payers in Jos, the Plateau State Capital.

According to the notice currently in circulation in the state, a 10% Withholding Tax would now be paid by tenants in Plateau state.

The two page document, made available to this medium specifying respective years, notifies the rent payers in the state of alleged outstanding tax liabilities.

The document in part reads:

“Pursuant to the provision of the Personal Income Tax (Amendment) Act 2011, the Service hereby notifies you of your outstanding tax liability for the respective years:”

According to the document, a payer of rent is expected to on due date of rent deduct therefrom tax at a rate prescribed by law. In line with this, the second page of the letter with the heading:

“Personal Income Tax 2011 as Amended on withholding Tax on Rent”, reads, “In line with section 68 and 69 (1) of PITA 2011 as Amended that the payer of Rent shall at the due date when the rent is paid or credited shall deduct there from tax at a rate prescribed in subsection (2).

Continuing, the document stated:

“Subsection (2) states that the rate at which tax is to be deducted for the purpose of the section shall be 10% (percent at gross rent)”.

Explaining the 10%, the letter went further to request the rent payer to render the returns within two weeks, saying, “In view of the above foregoing, the tax authority is notifying you to render your returns within two (2) weeks of receipt of this notice”.

Mr, Dashe Arlat, Ag. Chairman PSIRS

“Failure to comply by the provisions of the law shall attract sanctions from the government”. The letter warned.

The document, which findings by  investigation, is already in the Public domain, as some residents of Jos, affirmed they have received the demand notice.

According to our reporters following this latest development in Plateau state, the document is already generating different reactions and concerns from the Jos residents.

promises to keep you posted of events concerning this development in Plateau State as they unfolds.