The Federal Ministry of Finance (FMoF) has issued the Deduction of Tax at Source (Withholding) Regulations 2024 (hereafter referred to as “the Regulations”). The Regulations are aimed at providing clarity on the rules for the deduction of tax from payments made to taxable persons under these Acts: the Companies Income Tax Act (CITA), Capital Gains Tax Act (CGTA), Personal Income Tax Act (PITA), and Petroleum Profits Tax Act (PPTA).
The other key objectives of the Regulations are to reduce Withholding Tax (WHT) rates applicable to low-margin businesses, promote ease of tax compliance and administration, reduce arbitrage between corporate and noncorporate structures, reflect emerging issues and leverage global best practices. The Regulations complement the applicable statutory provisions and replace all prior rules regarding deductions at source, except for Pay-As-You-Earn (PAYE) tax.
The Regulations became effective from 1 July, 2024.
Click here to read the full publication.
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