Tax & Business Matters - Nigeria

The Windfall Tax Conundrum - Navigating the fiscal impact on Nigerian banks

The Nigerian government is proposing a 50% tax ("Windfall Tax") on realised profits made by Nigerian banks from exchange transactions in the 2023 financial year (FY). This proposal has sparked some debate considering the many practical concerns that it raises. One of such issues is that it retrospectively applies the tax on profits from the 2023, which the banks already filed and paid by June 2024. 

Please read our Article on the proposed Windfall Tax below:

Download The Windfall Tax Conundrum Navigating the Fiscal Impact on Nigerian Banks

Highlights of the Deduction at Source (Withholding) Regulations 2024

The Federal Ministry of Finance has recently issued the Deduction at Source (Withholding) Regulations 2024 (the “Regulations” or “WHT Regulations”), effective 1 July 2024, except for the rules applicable to the gaming sector which are billed to commence on 1 October 2024. These Regulations have introduced a number of changes to the Withholding Tax (WHT) regime in Nigeria.

Caveat: The Regulations have been signed by the Minister of Finance thus come into force in line with the Interpretation Act. The gazette is expected shortly in line with the Authentication Act as it announces it formally and validates its authenticity. It is less likely that the signed regulation in circulation will change but it is recommended that taxpayers rely on the gazetted version.

PwC has analysed the Regulations and highlighted relevant considerations. Please see our Tax Alert and the Regulations below:

Download PwC Tax Alert - Highlights of the Deduction at Source (Withholding) Regulations 2024

Download DEDUCTION OF TAX AT SOURCE (WITHHOLDING) REGULATIONS 2024