The Federal Government (FG) is set to implement new withholding tax (WHT) regulations in January 2025, as announced by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele. The official gazette for the year 2024 has been published, detailing rate reductions and exemptions for businesses, including SMEs with turnover not exceeding N25 million.
The new Regulations will come into effect on 1st January, 2025, with a commencement date of 30th September, 2024, allowing for a 90-day notice period for tax changes, in accordance with the 2017 National Tax Policy. The Federal Inland Revenue Services (FIRS) may issue guidelines for early implementation from 1st July, 2024, with approval from the Finance Minister.
The aim of the Regulations is to provide relief for businesses rather than impose burdens. Oyedele has encouraged the public to download a copy of the Regulations for further information. Stay informed to navigate the changing tax landscape effectively.