Foreign companies that consider withholding tax their final obligation in Nigeria are facing a new challenge, which is mandatory registration. Under the Nigeria Tax Administration Act 2025, local firms now risk a N5 million penalty for contracting unregistered entities, putting pressure on cross-border deals.
This means that even when withholding tax (WHT) fully settles a non-resident company’s income tax liability, failing to register can now delay contracts, disrupt payments, and strain commercial relationships.
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