FIRS engages tax experts on 2024 withholding tax reforms

 

On June 18–19, 2025, the Federal Inland Revenue Service (FIRS) hosted a high-level forum in Abuja, bringing together tax consultants, compliance experts, and representatives from professional bodies to unpack the new 2024 Withholding Tax (WHT) Regulations.

Key highlights:

1. Clarifying technical details: Participants had the opportunity to directly interface with FIRS, seeking guidance on complex provisions such as deduction rules, exemptions, installment payments, and enhanced compliance protocols .
2. SME-friendly focus: The reforms aim to reduce the compliance burden on small and medium-sized enterprises by streamlining reporting and aligning domestic practices with global standards.
3. Two-way dialogue: FIRS encouraged tax practitioners to continue advising clients responsibly and serve as vital feedback channels for future tax policy design .
4. Building trust: According to Collins Osagie Omokaro, Special Adviser to FIRS’s Executive Chairman, Dr. Zacch Adedeji, this transparent engagement approach underlines the agency’s vision of a taxpayer-centric, trust-based tax system .
5. Recognition of compliance: During the session, FIRS also honored top-performing taxpayers, reinforcing its commitment to transparency and civic responsibility.

What’s in the 2024 WHT Regulations?

1. Effective date: The regulations apply from January 1, 2025 (with early voluntary adoption permitted from July 1, 2024) .
2. Expanded scope & exclusions: They detail which transactions and entities are subject to withholding and introduce transaction-level exemptions—particularly benefiting small companies dealing in sums under ₦2 million, provided they have valid TINs .
3. Structural improvements: Introduces new obligations around issuing valid receipts, clearer compliance deadlines, and stronger penalties for non-compliance or counterfeit documentation .

Why it matters

1. For businesses (SMEs especially): The reforms reduce uncertainty and compliance burden, positively impacting cash flow and administrative simplicity .
2. For withholding agents: Professional advisors are now expected to help clients navigate the new rules and actively channel insights back to FIRS to inform future policy.
3. Trust-building: This dialogue-centric approach fostered by FIRS signals a move toward a more cooperative and transparent tax administration.

 In Conclusion:

FIRS’s recent forum marks a significant stride in Nigeria’s tax modernization journey, emphasizing clarity, simplified compliance, and mutual engagement. Tax professionals are pivotal in translating these changes into practice and offering feedback to strengthen the tax system.