The objectives of the Deduction of Tax at Source Regulations are to:

(a) set out the rules for the deduction of tax at source from payments to taxable persons under the Capital Gains Tax Act, the Companies Income Tax Act, Petroleum Profits Tax Act, and the Personal Income Tax Act in relation to specified transactions ;

(b) remove complexities in the deduction of tax at source ;

(c) reduce the rates of deduction for sectors with low margins ;

(d) provide exemptions for small businesses and manufacturers;

(e) promote the ease of tax compliance and administration;

(f ) curb tax evasion;

(g) reduce arbitrage between corporate and non-corporate business structures ; and

(h) adopt global best practices in the deduction of tax at source.

Deduction of Tax at Source (Withholding) Regulations 2024_Gazetted[1]