Bizblog term of the week: Withholding tax(WHT)

   Hello my blogvisitors,I've decided to change the caption "Bizblog term of the day to BIZBLOG TERM OF THE WEEK" since i make the post once a week. But still having same quality content to learn and act on.

 Now to this week's term,we got Withholding tax.

   Withholding tax is an advance tax on income deducted at source by payers of a sum of money due to another person and remitting such to the government.On remittance of withholding tax,a withholding tax credit note is given.

     As stated earlier,withholding tax is an advance tax which serves as a credit against the income taxes of an individual or a company which implies that your WHT is treated as a payment when filing your final tax return and thus you could either get a refund or otherwise if tax withheld is greater than your tax liability or vice versa.

     Generally speaking,WHT system tends to track down taxpayers and income that they which not to report or disclose which i simply put as curbing tax evasion

Presently, Withholding tax rate is 10%