We discuss some of the key updates in Tax laws in Nigeria as follows.

Withholding Tax Regulations Of 2024
On 2 October 2024, the official gazette of the Deduction of Tax at Source (Withholding) Regulations 2024 (Regulations), issued by The Minister of Finance, was released. The Regulations supersede the previously existing deduction of tax at source regulations. The regulations provide rules that apply to the deduction of taxes (at source) from payments to taxable individuals and companies under the Companies Income Tax Act (as amended), the Petroleum Profits Tax Act (as amended) and the Personal Income Tax Act (as amended). The Regulations describe persons empowered to deduct tax at source on eligible transactions and clarifies the transactions that are exempted from withholding tax. The Regulations also introduced changes that aim to benefit businesses with narrow profit margins through reduced withholding tax rates. It represents a good step towards the ease of doing business and fostering a business-friendly environment for companies operating in Nigeria.

 

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