Key Highlights & Modules Structure for February 2025 Technical Session 📌 Overview The Withholding Tax (WHT) Regulations, 2024, issued by the Minister of Finance, Wale Edun, take effect from January 1, 2025, with early adoption from July 1, 2024. The regulations establish clear rules for tax deduction at source under: ✔ Companies Income Tax Act (CITA) ✔ Petroleum Profits Tax Act (PPTA) ✔ Personal Income Tax Act (PITA) ✔ Capital Gains Tax Act (CGTA) 🎯 Key Objectives • Simplify tax deduction and compliance • Lower WHT rates for low-margin sectors & treaty countries • Exempt small businesses (≤₦2M/month, with TIN) • Curb tax evasion & enhance transparency • Align with global best practices 📌 Scope & Application • Applies to goods, services, and other eligible transactions under CITA, PPTA, PITA, and CGTA. • Higher WHT rates (double) apply for recipients without a TIN. 📅 Deduction & Remittance Deadlines Tax Authority Deadline FIRS 21st of the following month State IRS (CGT & PAYE) 10th of the following month Other State IRS WHT Deductions 30th of the following month ✅ Exempt Transactions 🚫 Securities Lending & REIT Dividends 🚫 Locally Manufactured Goods (by the producer) 🚫 Imported Goods (No Taxable Presence) 🚫 Petroleum Product Supplies (LPG, CNG, PMS, etc.) 🚫 Telecom, Internet, & Airline Ticket Payments 🚫 Insurance Premiums & Direct Debit Fees ❌ Non-Compliance Consequences ⚠ Failure to Deduct WHT: Entity is liable for unpaid tax ⚠ Failure to Remit WHT: Attracts penalties & interest charges ⚠ Issuing WHT Receipts Without Remittance: Payer remains responsible 📖 Lecture Notes – Structured Modules 📌 Module 1: Introduction to WHT Regulations, 2024 • Legal basis under CITA, PPTA, PITA, CGTA • Clear framework for tax deduction at source 📌 Module 2: Scope & Application • Covers goods, services, and specified transactions • Applies to companies, MDAs, statutory bodies & payment agents 📌 Module 3: Deduction Rates & Special Considerations • Lower WHT rates for treaty countries • Higher rates (double) if recipient lacks TIN • Exemption for small businesses (≤₦2M/month, with TIN) 📌 Module 4: Treatment of Tax Deductions • WHT is NOT an additional tax but an advance or final tax liability • Deduction occurs at the earliest of payment or settlement • For non-residents, WHT is final tax unless a taxable presence exists 📌 Module 5: WHT Remittance & Compliance • Strict remittance deadlines for FIRS & State IRS • Required supporting documents: Name, TIN, transaction details 📌 Module 6: Consequences of Non-Compliance • Failure to deduct or remit WHT attracts penalties • Annual interest charges apply for late remittance • Issuing receipts without actual remittance leads to liability 📌 Module 7: Exemptions from Deduction at Source • Applies to registered securities transactions, REIT dividends, and petroleum product supplies • Telecom, internet, airline tickets, and direct debit fees are also exempt 📌 Module 8: Effective Date & Transition • Regulations take effect from January 1, 2025 • Optional early adoption from July 1, 2024 • Previous WHT regulations revoked (past actions remain valid) 📌 Module 9: Key Definitions • Across-the-counter transactions: Instant payments without contracts • Connected persons: Related entities as per Transfer Pricing Regulations • Manufacturing: Includes assembling final products & energy production • Professional fees: Payments for regulated services (e.g., accountants, engineers, lawyers) • Winning: Net payout in a game of chance (calculated over a calendar month) 📌 Module 10: Conclusion ✅ Simplifies WHT compliance & enhances transparency ✅ Reduces tax burdens for SMEs & promotes efficiency ✅ Aligns Nigeria’s WHT framework with global best practices ✅ Understanding the new rules is essential for businesses & tax professionals 🔹 Failure to comply will result in penalties and interest charges. 🔹 Ensure your business is WHT-compliant ahead of the 2025 implementation. 📢 Next Steps: 📍 Register here: https://im.page/c466d424 email: [email protected] WhatsApp: 08100537180 📍 Stay informed & avoid compliance risks! 🎟️ Secure Your Spot Now – Limited Slots Available! #withholdingtax #wht2024 #taxcompliance #nigeriatax #taxmobilepremium