Withholding tax regulations active until December – FIRS

The Federal Inland Revenue Service has said that the current Withholding Tax regime will remain effective until December 31, 2024.

This is according to a public notice informing taxpayers, tax practitioners, and the general public about the implementation of the Deduction of Tax at Source Withholding Regulations, 2024.

The new regulations, published in the Federal Government Gazette, will officially take effect on January 1, 2025.

In the notice signed by FIRS Executive Chairman Zacch Adedeji on Thursday, the agency confirmed that while the new regulations, published in the Federal Government Gazette, are slated to take effect from January 1, 2025, the existing WHT framework as outlined in the Companies Income Tax (Rates, ETC, of Taxes Deducted at Source (Withholding Tax) Regulations (S.I. 1.10 of 1997) will continue to govern tax deductions until the end of 2024.

The notice read, “The Deduction of Tax at Source Withholding Regulations, 2024, published in the Federal Government Gazette, takes effect from 1st January 2025.

“The current WHT regime as enshrined in the Companies Income Tax (Rates, ETC, of Taxes Deducted at Source (Withholding Tax) Regulations (S.I. 1.10 of 1997) and relevant WHT provisions remain in force up to and until 31st December 2024.”

According to the notice, taxpayers are advised to ensure compliance with these existing laws. “Taxpayers are encouraged to continue to comply with their tax obligations in line with the extant laws,” the FIRS added.

The PUNCH earlier reported that the Federal Government unveiled new tax regulations aimed at reducing the tax burden on the manufacturing sector and small businesses.

This was disclosed in the “Deduction of Tax at Source (Withholding) Regulations, 2024,” signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Wednesday.

The Deduction of Tax at Source (Withholding) Regulations, 2024, aim to streamline the deduction of taxes at source from payments to taxable persons, reduce complexities, and promote ease of compliance for businesses.

The newly introduced regulations will cover payments made under the Capital Gains Tax Act, Companies Income Tax Act, Petroleum Profits Tax Act, and the Personal Income Tax Act.