{"id":354599,"date":"2025-02-03T08:55:43","date_gmt":"2025-02-03T07:55:43","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=354599"},"modified":"2025-02-03T08:55:43","modified_gmt":"2025-02-03T07:55:43","slug":"firs-announces-new-withholding-tax-system-to-streamline-collection","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2025\/02\/03\/firs-announces-new-withholding-tax-system-to-streamline-collection\/","title":{"rendered":"FIRS announces new withholding tax system to streamline collection"},"content":{"rendered":"<ul>\n<li><strong>The FIRS explained that the initiative was designed to ensure that taxes were collected efficiently and transparently, fostering accountability among businesses and employers.<\/strong><\/li>\n<\/ul>\n<hr \/>\n<p>The director general of the <a href=\"https:\/\/www.withinnigeria.com\/news\/2025\/01\/31\/firs-collected-n21-6-trillion-revenue-in-2024-targets-n25-trillion-in-2025-adedeji\/\"><strong>Federal Inland Revenue Service (FIRS),<\/strong> <\/a>Collins Omokaro, has announced the implementation of the withholding tax system to boost the economy.<\/p>\n<p>The FIRS DG said it is aimed to streamline tax collection, enhance compliance, and increase revenue for critical sectors through this system.<\/p>\n<p>According to the FIRS, the new regulation ensures efficient and transparent tax collection, promoting accountability among businesses and employers.<\/p>\n<p>The regulation mandates tax deductions from payments like salaries, rent, and dividends, ensuring a steady revenue inflow and minimizing tax evasion.<\/p>\n<p>The FIRS emphasized that integrating Tax Identification Numbers, TINs, with transactions and establishing penalties for non-compliance are key measures.<\/p>\n<p>Adjustments to tax rates for residents and non-residents aim to support local businesses while ensuring fairness for foreign entities.<\/p>\n<p>The FIRS projects that this initiative will create a more equitable tax system, where individuals and businesses contribute to national development.<\/p>\n<p>The anticipated revenue increase is expected to fund public services, stimulate economic growth, and enhance Nigerians&#8217; quality of life.<\/p>\n<p>Despite potential benefits, the FIRS acknowledges implementation challenges, including the need for businesses to invest in software and training.<\/p>\n<p>Small enterprises and vendors may face non-compliance due to lack of awareness, and sectors like gaming and telecommunications must adapt to unique tax obligations.<\/p>\n<p>Effective implementation and cooperation among stakeholders are crucial for success, according to the FIRS.<\/p>\n<p>Omokaro said: \u201cThe new regulation is a game-changer for Nigeria\u2019s tax landscape. It will ensure that taxes are collected efficiently and transparently while fostering accountability among businesses and employers.<\/p>\n<p>\u201cBy placing the responsibility on businesses, employers, and other payers to withhold taxes at the point of payment, the government hopes to ensure a steady revenue inflow and minimise tax evasion.<\/p>\n<p>\u201cThis initiative is expected to create a more equitable tax system where individuals and businesses contribute their fair share to national development.<\/p>\n<p>\u201cHowever, government agencies must intensify awareness campaigns to help businesses, especially small and medium enterprises, navigate the changes smoothly. The introduction of this regulation comes with high expectations.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FIRS explained that the initiative was designed to ensure that taxes were collected efficiently and transparently, fostering accountability among businesses and employers. The director general of the Federal Inland Revenue Service (FIRS), Collins Omokaro, has announced the implementation of the withholding tax system to boost the economy. The FIRS DG said it is aimed [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":341959,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored 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