Withholding Tax Regulations 2024 gazetted – Oyedele, Tax Committee chairman

The Deduction of Tax at Source (Withholding) Regulations, 2024, has been published in the official gazette.

Taiwo Oyedele, Chairman Presidential Fiscal Policy and Tax Reforms Committee, made this known in a post on his X handle on Wednesday.

Oyedele stated that the Regulations grant rate reduction and full exemption from Withholding Tax to many businesses, including SMEs with annual turnover not exceeding N25 million.

According to his post on X, “the commencement date of the new Regulations is 30th September 2024, while implementation begins on 1st January 2025.”

He explained that this was to allow for a minimum of 90 days notice required for tax changes in line with the 2017 National Tax Policy.

“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 added.