The Federal government has published the Deduction of Tax at Source (Withholding) Regulations, 2024, in the official gazette.
According to the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, the regulation was gazetted today, Wednesday, 2nd October 2024.
The Withholding Tax Regulations grant rates reduction and full exemption from withholding tax to many businesses, including Small and Medium Enterprises (SMEs) with annual turnover not exceeding ₦25 million.
“The commencement date of the new Regulations is 30th September 2024, while implementation begins on 1st January 2025 to allow for a minimum of 90 days notice required for tax changes in line with the 2017 National Tax Policy,” Oyedele said.
He explained that there is a provision permitting the Federal Inland Revenue Service with the approval of the Minister of Finance, to permit early application of the regulation from 1st July 2024.
“However, there is a provision permitting the FIRS, with the approval of the Finance Minister, to issue guidelines for the implementation of the Regulations and where appropriate, permit early application of the Regulations from 1st July, 2024.
“The essence of this provision is to enable persons who wish to adopt the Regulations early to do so given that it is generally providing reliefs to businesses rather than imposing a burden,” Oyedele explained.
