Tax Alert - FIRS Issues Circular on Withholding Tax (WHT) Implementation

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FIRS Issues Circular on Withholding Tax (WHT) Implementation Tax Alert

Dear Vitus We are pleased to announce the release of our new publication The FIRS issues Circular to guide implementation of the Withholding Tax (WHT) Regulations 2024. On February 24, 2025, the Federal Inland Revenue Service (FIRS) issued a Circular providing guidance on the implementation of the Withholding Tax (WHT) Regulations, 2024, effective from January 1, 2025. Download the full report Notably, non-resident companies (NRCs) are now required to deduct WHT, though it remains unclear whether this applies to NRCs without a fixed base or dependent agency in Nigeria. Additionally, the Circular raises concerns about applying WHT to barter or exchange transactions, where both parties simultaneously give and receive value. It remains uncertain if both parties should deduct WHT based on the fair market value of exchanged goods or services. Furthermore, the Circular specifies that WHT exemptions will not apply to fees or commissions retained upfront by unlicensed agents, despite the Regulations not mentioning a licensing requirement. In case you have any questions, please do not hesitate to contact us. Contact us

Kenneth Erikume Partner +234 (1) 271 1700 Email Emeka Chime Associate Director +234 (1) 271 1700 Email

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