Inside The Benefits As Withholding Tax Regulations Kick Off
The Tinubu-led administration’s move to revamp the fiscal regime and tax systems has taken off with the 2024 Withholding Tax Regulations which effectively starts today January 2, 2025.
The government in July 2024 approved the Withholding Tax Regulations.
Some of the key changes will greatly benefit businesses and make operating environment more friendly.
Here are the key changes:
1. Small businesses are now exempted from Withholding Tax.
2. Businesses with low margins will now pay reduced rates.
3. Manufacturers and food producers such as farmers are now exempted.
4. Under the new WHT Regulations, measures are put in place 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.
7. Clarity on the timing of deduction and definition of key terms.
