Key Things You Should Know About The Deduction At Source (Withholding) Regulations 2024

Background

Withholding Tax (WHT) was implemented as an advance payment of income tax and is deductible at source on payments made for certain transactions. It can be applied as a credit against income tax in most instances, except where the laws provide that the WHT is final tax.

Recently, the Federal Ministry of Finance issued the Deduction at Source (Withholding) Regulations 2024, which took effect on 1 July 2024 subject to changes from a gazetted version. These regulations introduced several changes to the withholding tax (WHT) regime in Nigeria.

The new rules for the gaming sector will commence on 1 October 2024.

The key changes introduced are to address the identified challenges, and specifically include: