*Taiwo Oyedele, Chairman, Presidential Fiscal Policy and Tax Reforms Committee, explains the major changes in regard to benefits of the Withholding Tax Regulations 2024 to small businesses, manufacturers, and producers, as the implementation commences in the Nigerian economy

Isola Moses | 绿帽献妻

Mr. Taiwo Oyedele, Chairman, Presidential Fiscal Policy and Tax Reforms Committee, in Nigeria, Wednesday, January 1, 2025, highlighted the major changes in terms of the inherent benefits of the Withholding Tax (WHT) Regulations 2024.

绿帽献妻 reports the Withholding Tax Regulation became effective Wednesday is part of the ongoing fiscal policy and tax reforms in the country.

Oyedele, in a message via his verified social media account affirmed the 2024 Withholding Tax Regulations, which was approved July last year, published in the Official Gazette October 2024, took effect January 1.

According to the Chairman of the Fiscal Policy and Tax Reforms Committee, below are some of the fundamental changes in the 20224 WHT regulations in the Nigeria economy:

1. Exemption of small businesses from Withholding Tax;
2. Reduced rates for businesses with low margins;
3. Exemptions for manufacturers and producers such as farmers;
4. Measures to curb evasion and minimise tax avoidance;
5. Ease of obtaining credit and utilisation of tax deducted at source;
6. Changes to reflect emerging issues and adopt global best practices, and
7. Clarity on the timing of deduction and definition of key terms.

Earlier, Mr.Wale Edun, Honourable Minister for Finance and Coordinating Minister for the Economy, October last year, had stated in the WHT Act that 鈥渋n exercise of the powers conferred upon me by section 81(9) of the Companies Income Tax Act, Cap C21, LFN, 2004, Section 56 of the Petroleum Profits Tax Act, Cap P13, LFN, 2004, Section 73(6) of the Personal Income Tax Act, Cap. P8, Laws of the Federation of Nigeria, 2004, and of all other powers enabling me in that behalf鈥�, he made WHT Regulations.

Edun also said the objectives of these Regulations are to set out the rules for the deduction of tax at source from payments to taxable persons under the Capital Gains Tax Act, the Companies Income Tax Act, Petroleum Profits Tax Act, and the Personal Income Tax Act in relation to specified transactions in the economy.

The Minister also stated the regulations are to remove complexities in the deduction of tax at source, reduce the rates of deduction for sectors with low margins, provide exemptions for small businesses and manufacturers, and promote the ease of tax compliance and administration.

Others, he noted, are to curb tax evasion, reduce arbitrage between corporate and non-corporate business structures, and to adopt global best practices in the deduction of tax at source, in Nigeria.