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The Federal Ministry of Finance issued a new regulation on the deduction of tax at the source (Withholding Tax), which took effect from the 1st of July 2024, and has been a positive topic of discuss in the last month, due to its expected positive impact on businesses in Nigeria, through the clarification and simplification of the tax deduction and remittance procedures, thereby aiding the utilisation of withholding tax credits, and ease of doing business, which in turn encourages tax compliance. Our Update highlights the major improvements on Withholding Tax administration, as contained in the regulations, as well as our commentary on same. #LexworthUpdates #Taxation #TaxCompliance

Did you know? According to Section 11 of the Personal Income Tax Act (PITA), if you bring income earned outside Nigeria into the country through government-approved channels, you could be eligible for a tax credit against your payable tax. This means a little extra savings on taxes for your international earnings! 🌍💸 #TaxFacts #TaxBenefits #DidYouKnow Follow us for more interesting tax facts at ://https://lnkd.in/dqHxsiga

Tax Compliance Trivia Thursday How well do you know tax compliance in Nigeria? Let's find out! Trivia Question: What is the penalty for failing to file your personal income tax return on time in Nigeria? A) ₦10,000 B) ₦25,000 C) ₦50,000 D) 5% of the tax due Think you have the answer? Share your guess in the comments, and we’ll reveal the correct answer tomorrow! #taxtrivia #aoaprofessionalservices

Looking for a good summary of changes to the withholding tax regime in Nigeria? Read through Deloitte's analysis. The increase in WHT on director's fees for Individuals to 15% is more reflective of the effective tax rate of individuals who receive this class of income than the previous 10%. I am personally looking forward to a modification to tax refund process in Nigeria for instances of actual overpaid tax. Would love to read your thoughts. #Nigeria #WHTregulations2024. #WHT

Deduction of Tax at Source (Withholding) 2024 The Federal Government of Nigeria has introduced the Deduction of Tax at Source (Withholding) Regulations 2024, bringing significant changes to tax compliance. These regulations streamline the tax deduction process, promote transparency, and provide much-needed relief for SMEs and sectors with low profit margins through reduced tax rates and exemptions. Key Highlights: Simplified tax deduction processes for businesses. Reduced withholding tax rates for industries like manufacturing and telecommunications. Exemptions for small businesses and certain transactions, minimizing compliance burdens. Clear guidelines for remittance and reporting to avoid penalties. It's time for businesses to review their tax strategies, ensuring compliance while taking full advantage of the new sector-specific benefits and exemptions. Learn more about how these regulations can impact your business and how to adapt to the changes effectively. #TaxCompliance #WithholdingTax2024 #NigeriaTaxReform #BusinessCompliance #SME #TaxRegulations #FinancialHealth #tax

On 31 March 2023, the Parliament of Ghana enacted the Income Tax (Amendment) Act, 2023, Act 1094 which received presidential assent on April 2, 2023. The amending Act addressed various tax measures aimed at increasing the Government’s tax revenue by approximately one billion two hundred and ninety million Ghana Cedis (GHS1.290b). Among these measures are the revision of the personal income tax bands for resident individuals, the introduction of withholding tax on the realisation of assets and liabilities, and revision of the treatment of foreign exchange losses. EY Ghana, in their latest tax alert, discusses key considerations emanating from the amendment. Read it here https://lnkd.in/dGwTz9HY 

Are you aware of the new developments in Nigeria’s withholding tax requirements? The Federal Ministry of Finance recently released the Deduction at Source (Withholding) Regulations 2024, bringing significant changes to the Withholding Tax (WHT) regime. All businesses, organisations (even tax-exempt ones), government entities, and payment agents must deduct WHT on eligible transactions. Stay ahead of the curve with our latest #TaxAlert, where we break down the implications and highlight key issues. Read now and ensure compliance! https://ow.ly/jmy450SyHk0 #WithholdingTax #TaxAlert

Question:Under the Companies Income Tax Act (CITA) in Nigeria, which of the following expenses is generally considered non-deductible for tax purposes? Choose the right option to the question and answer in the comment section. #taxtuesday #taxquiz #taxtips

Withholding tax represents an advance payment on income tax liability deducted from source. This tax obligation constitutes a source of Government revenue while minimising the risk of tax evasion on the part of a taxpayer by shifting the responsibility of tax deduction from the income recipient to the payer. The Deduction of Tax at Source (Withholding) Regulations, 2024 seek to establish rules governing the deduction of tax from payments made to taxable persons as identified by the various laws governing taxation in Nigeria, namely, the Capital Gains Tax Act, the Companies Income Tax Act, Petroleum Profits Tax Act, and the Personal Income Tax Act. This represents a key step towards strengthening fiscal governance by easing tax compliance by relevant parties. Read more: https://lnkd.in/d7ZbXeNN #withholdingtax #Nigeria #WHT #taxation #taxupdate