The Federal Inland Revenue Service (FIRS) has issued a public notice regarding new regulations on the deduction of tax at source. According to the announcement, the “Withholding Tax Regulations, 2024,” which were published in the Federal Government Gazette, will come into effect on January 1, 2025.

Until then, the existing withholding tax (WHT) regime, as outlined in the Companies Income Tax (Rates, ETC, of Taxes Deducted at Source) Regulations (S.1.10 of 1997), will remain in force. This current WHT system is set to expire on December 31, 2024, after which the new regulations will apply.

The FIRS is encouraging taxpayers to remain compliant with the tax laws and meet their obligations accordingly. For further clarification or inquiries, taxpayers can contact the Tax Policy & Advisory Department of the FIRS at their office in Wuse Zone 5, Abuja.

The announcement is signed by the Executive Chairman of the FIRS, Dr. Zacch Adedeji.

This development signals a significant shift in Nigeria’s tax system, and businesses are advised to prepare for the upcoming changes.