FG to implement new withholding tax regulations in January

The Federal Government (FG) has rolled out plans to implement the new withholding tax (WHT) regulations in January 2025.

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele made this known in a statement on Wednesday morning.

Also according to Oyedele, the FG has officially gazetted the withholding tax regulations for the year 2024.

“The Deduction of Tax at Source (Withholding) Regulations, 2024, has been published in the official gazette,” Oyedele wrote on his official X account.

“The Regulations grant rate reduction and full exemption from Withholding Tax to many businesses including SMEs with annual turnover not exceeding N25 million. Read further details here: fiscalreforms.ng/index.php/2024…

“The commencement date of the new Regulations is 30th September, 2024 while the 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.”

He, however, explained that there is a provision permitting the Federal Inland Revenue Services (FIRS) with the approval of the Finance Minister, Wale Edun to issue guidelines for the implementation of the Regulations and where appropriate, permit early application of the Regulations from 1st July, 2024.

According to him, 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 has also directed the public to download a copy of the Regulations via this medium: drive.google.com/file/d/1N5a_EW…