The federal government is expected to begin implementation of new withholding tax laws which grant rates reduction and full exemption from Withholding Tax to many businesses, including SMEs with annual turnover not exceeding N25 million, by 1st January 2025.
Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, in a post on his X handle on Wednesday, explained that the new tax law has been gazetted.Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, in a post on his X handle on Wednesday, explained that the new tax law has been gazetted.
The purpose of the regulation, according to the gazetted copy sighted by BusinessDay is to remove complexities in the deduction of tax at source; reduce the rates of deduction for sectors with low margins; provide exemptions for small businesses and manufacturers; promote the ease of tax compliance and administration; curb tax evasion among others.
These Regulations apply to taxes deductible at source from payments to taxable persons as defined under the Capital Gains Tax Act, the Companies Income Tax Act, Petroleum Profits Tax Act, and the Personal Income Tax Act.
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