- Safiu Kehinde
Sequel to the new regulations of the ongoing fiscal policy and tax reforms, the Federal Inland Revenue Service (FIRS) has announced the commencement of tax reduction and exemption in January 2025.
The announcement was made in a statement issued on Thursday by the agency.
As contained in the statement, the reviewed Witholding Tax (WHT) Regulations will take effect from next year.
However, current (WHT) will be sustained till December 31st 2024.
“The Federal Inland Revenue Service (“the Service”) hereby notifies taxpayers, tax practitioners and the general public as follows:
“The Deduction of Tax at Source Withholding (WHT) Regulations, 2024 published in the Federal Government Gazette takes effect from 1 st January 2025.
“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 31 st December 2024.”
Recall that NPO Reports the publication of the newly reviewed Tax Witholding Regulations.
Included in the new regulations is the exemption of farmers and SMEs with profits below N25 million from Witholding Tax.
Also included in the new regulations is the grant rates reduction for taxable organizations and business ventures.