NewsCase StudiesEvents

Federal Revenue Service Confirms Accrual Basis Method

Also in the news...

UK Export Finance is ‘open for business’ with billions available for exporters

Exports Minister, Mike Freer, delivers keynote speech at the UK Trade and Export Finance Forum

Trade Secretary to boost transatlantic trade and investment on first US visit

International Trade Secretary will lay groundwork for broad approach to transatlantic trade and investment in first official visit to New York and Washington DC

Points-based immigration system: delivering on people’s priorities

One year ago a new immigration system launched, with visa routes attracting skilled workers across construction, hospitality, health, social care, science and research.

UK Tradeshow Programme

The UK Tradeshow Programme offers government support to help UK businesses successfully attend or exhibit at overseas trade shows.

New Legal Regime on Stamp Duty Charges in Nigeria under the Finance Act, 2019

The Finance Act, 2019 amended some provisions of the Companies Income Tax Act, Petroleum Profit Tax Act, Personal Income Tax Act, Value Added Tax Act, Customs and Excise Tariff etc. (Consolidation Act), Capital Gains Tax Act and Stamp Duty Act.

Federal Revenue Service Confirms Accrual Basis Method

Back to News

The Federal Revenue Service finally clarifies the position on what method should be used to calculate withholding tax on professional services delivered between two resident entities.

Withholding tax of 1.5% applies to the supply of professional services and is a tax advance creditable against the payers final tax liability. Over the past few years, there has been confusion as to whether the tax should be accounted for on an accrual basis or on a cash basis.

The Interpretative Act 8/2014 (Ato Declaratório Interpretativo SRF 8/2014 – ADI 8/2014), was published in the Official Gazette of September 3, 2014 and clarifies that the accrual basis method must be observed moving forward.

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.