Omolabake Fasogbon
Atax Professional, Dr. Titilayo Fowokan, has expressed optimism over the newly gazetted withholding tax Regulation (WHT), titled, ‘The Deduction of Tax at Source (Withholding) Regulations, 2024.’
To him, the new WHT law aligns with international best tax practice.
Fowokan, reacting to the gazetted regulation, reckoned that its implementation by January 1, 2025, would enhance ease of doing business and promote economic transparency.
Analysing the reviewed legislation, Fowokan said it grants rate reduction and full exemption from withholding tax to businesses, including SMEs with annual turnover not exceeding N25 million.
She further argued that the regulation demystifies how WHT applies to unincorporated entities, such as those in the informal sector.
“It also distinguishes between resident and non-resident businesses operating in Nigeria, ensuring ease of doing business. The regulation clearly delineates between Nigerian and foreign companies, ensuring all entities comply with tax laws. Specifically, it outlines procedures for transactions in Nigeria. For instance, how WHT applies to related businesses is different from how it applies to unrelated business,” she stated.
The tax expert emphasised the need for enlightenment of the public about their rights and obligations on the new WHT regime to enhance compliance.
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