The Federal Inland Revenue Service (FIRS) has disclosed that the newly gazetted Withholding Tax (WHT) regime will take effect from the 1st of January 2025.
Consequently, FIRS disclosed that the current WHT regime as enshrined in the Companies Income Tax (Rates, ETC, of Taxes Deducted at Source (Withholding Tax) Regulations (S.I.10 of 1997) and relevant WHT provisions remains in force up to and until 31st December 2024.
The clarification followed a statement by Taiwo Oyedele, Chairman of the Presidential Committee On Fiscal Policy And Tax Reforms, on Wednesday, that the commencement date of the new regulations is September 30, 2024, while implementation begins on January 1, 2025, to allow for a minimum of 90 days’ notice required for tax changes in line with the 2017 National Tax Policy.
In a notice signed by the Executive Chairman of the FIRS, Zacch Adedeji, the service noted that the current withholding tax regime as provided in the Company Income Tax (CIT) regulation would continue to remain in force until December 31, 2024.
According to the agency, taxpayers must oblige to the existing laws pending the implementation of the newly gazetted withholding tax regulations.
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“The Deduction of Tax at Source Withholding (WHT) Regulations, 2024 published in the Federal Government Gazette takes effect from 1st January 2025,” FIRS said.
“The current WHT regime as enshrined in the Companies Income Tax (Rates, ETC, of Taxes Deducted at Source (Withholding Tax) Regulations (S.1.10 of 1997) and relevant WHT provisions remain in force up to and until 31st December 2024.
“Taxpayers are encouraged to continue to comply with their tax obligations in line with the extant laws.”
FIRS also urged the public to direct further enquiries on the above subject to the director, tax policy and advisory department of the service at 26 Sokode Crescent, Wuse Zone 5, Abuja.
By: Babajide Okeowo
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