The Federal Government has introduced new regulations aimed at reducing the tax burden on the manufacturing sector and small businesses.
The “Deduction of Tax at Source (Withholding) Regulations, 2024,” signed by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, streamline the deduction of taxes at source from payments to taxable persons, reduce complexities and promote ease of compliance.
The regulations cover payments made under the Capital Gains Tax Act, Companies Income Tax Act, Petroleum Profits Tax Act and the Personal Income Tax Act.
They aim to promote global best practices, reduce tax evasion and curb arbitrage between corporate and non-corporate structures.
The regulations outline rules for deductions, targeting areas where tax collection has previously been difficult or unclear.
The Ministry aims to foster an environment where small businesses and manufacturers can benefit from tax exemptions, especially in sectors with low profit margins.
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