Experts guide SMEs on documentation

Tax experts have advised Small and Medium Scale Enterprises (SMEs) on the need to pay close attention to documentation and agreements to ensure they avoid unnecessary tax liabilities.

This advice was shared during the first edition of the United Bank for Africa (UBA) Knowledge Series webinar, in the year titled “2024 Withholding Tax Regulations: Specific Emphasis on How They Affect SMEs”. It held on Thursday in Lagos, where experts discussed the implications of the new withholding tax regulations and provided insights on how businesses could navigate the evolving tax landscape to thrive in 2025 and beyond.

Speakers, Head, SME Banking, UBA, Babatunde Ajayi; Financial Analyst at Anderson Consulting, Adeyemi Adeniran; and another Financial Analyst at Anderson Consulting, Vincent Okoukoni; shared practical insight and strategies for SMEs to comply with the new regulations while minimising financial burdens and maximising growth opportunities.

Explaining the fundamentals of the newly proposed withholding tax regulations, Adeniran noted that the updated system aimed to address inefficiencies in the previous regime and ensure timely tax remittances to support government obligations.

Highlighting the benefits of the 2024 withholding tax to SMEs, Okoukoni elaborated that businesses with yearly turnover of less than N25 million are exempted from tax deductions on payments received.

Head, SME Banking, UBA, Babatunde Ajayi, emphasised the bank’s commitment to supporting SMEs in light of the new withholding tax regulations.