Tax & Business Matters - Nigeria

You are Invited: Webinar on 2024 Withholding Tax Regulations

PwC is pleased to invite you to our webinar on ‘Unpacking the new WHT regulations: Implications for businesses’.

The webinar is designed to provide valuable insights and address the key issues from the recently gazetted Deduction at Source (Withholding) Regulations, 2024.

Date: 11 October 2024

Time: 10am

Platform: Webex

We will be joined by Mr Taiwo Oyedele, Chairman of the Fiscal Policy and Tax Reforms Committee and Mr Micheal Olufemi Olarinde, Head of the Fiscal and Tax Reforms Division, Federal Inland Revenue Service (FIRS). 

Please register here to confirm your attendance by 9 October, 2024. 

We look forward to your participation in what promises to be an informative and engaging session.

Deduction of Tax at Source (Withholding) Regulations, 2024: Key changes from the official gazette

The Federal Government of Nigeria on 2 October 2024, released the official gazette of the “Deduction of Tax at Source (Withholding) Regulations, 2024” (the "Regulations"). Following the release of the Regulations, the Federal Inland Revenue Service (FIRS) also issued a Public Notice relating to the Regulations. 

One key update to the Regulations is that the new rules become effective from 1 January 2025, with some opportunity for early adoption. 

PwC has highlighted other key changes introduced following the earlier version signed by the Minister of Finance released to the public in July 2024 (see our previous publication here), and relevant updates from the FIRS Public Notice.

Please see our Tax Alert, the official gazette of the Regulations and the FIRS Public Notice below:

Download PwC Tax Alert- Deduction of Tax at Source (Withholding) Regulations 2024 Key changes from the official gazette

Download Deduction of Tax at Source (Withholding) Regulations 2024_Gazetted

Download WHT Regulations 2024- FIRS Public Notice

 

 

VAT Modification Order 2024 - Incentivising Energy Transition in Nigeria

The Federal Government of Nigeria has recently issued the Value Added Tax (Modification) Order 2024 (the “Order” or “VMO 2024”), which introduces notable amendments to the VAT Act. The VMO 2024 does not repeal or replace the most recent VMO which was issued in 2021, but only introduces some specific amendments. Please see link here to the VMO 2021, including our previous Tax Alert on the subject.

The modifications in the VMO 2024 are significantly focused on Nigeria’s ongoing efforts around energy transition and largely expands the list of goods and services exempted from VAT under the Act.

Most of the incentives in the Order were previously published in a Circular issued by the Ministry of Finance (MoF) in December 2023. However, there were concerns that the Circular did not have sufficient legal basis, considering that the VAT Act empowers the MoF to make certain amendments through a gazetted Order. The VMO 2024 therefore largely addresses this concern.

One key update in the VMO 2024 is that it removes VAT on AGO (or diesel) effective from 1 October 2023, which is expected to be a welcome development for many businesses. 

Please see our tax Alert and the VMO 2024 below:

Download PwC Tax Alert- VAT Modification Order 2024 - Incentivising Energy Transition in Nigeria

Download Value Added Tax Modification Order 2024 Publication