‘Pay your withholding tax or risk penalties,’ Anambra warns companies, others

The Anambra State Government has asked corporate bodies, government agencies, and organisations operating within the state to file their monthly Withholding Tax (WHT) returns or risk heavy penalties.

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The Chairperson of the Anambra State Internal Revenue Service, Greg Ezeilo, disclosed this in a public notice issued on Friday.

He said that statutory bodies, public authorities, tax-exempt institutions, government ministries and departments, and even non-corporate bodies are also mandated to file their monthly WHT returns.

Mr Ezeilo explained that the directive is in accordance with the Nigeria Tax Administration Act, 2025, and the Withholding Tax (Deduction at Source) Regulations 2024.

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The chairperson stressed that, in line with the laws, WHT must be deducted at the point of payment for all qualifying transactions and remitted to the state’s coffers not later than the 21st day of the following month.

He warned that any transaction involving entities without a valid Tax Identification Number, National Identification Number, or Anambra State Identity Number will be subjected to WHT deductions at twice the applicable rate.

Penalties

Mr Ezeilo said failure to comply with the tax laws will result in various penalties, including payment of fines up to N1 million or imprisonment, depending on the nature of the violation.

The chairperson asked the affected firms and bodies to contact the Anambra State Internal Revenue Service via its dedicated telephone lines or visit its office in Awka, Anambra State, for further enquiries.

He said taxpayers are required to file their returns, along with a detailed schedule of deductions, including the taxpayer’s name, address, transaction date, and transaction nature, via the state’s official portal.

Passed into law in June 2025 by President Bola Tinubu and taking effect from 1 January 2026, the Nigeria Tax Administration Act 2025 consolidated four tax reform bills into a single document for efficiency and ease of reference.

They include the Nigerian Tax Act, the Nigerian Tax Administration Act, the Nigerian Revenue Service Act and the Joint Board Revenue Board Act.

Under the new law, persons earning N800,000 or less annually are exempted from paying tax on their income or gains.

Higher earners will be taxed progressively up to 25 per cent of their income.

For Nigerians who have lost their jobs, the tax exemption limit has been upped to N50 million from N10 million.

Nigerians earning a monthly income of N108,000 or less as individuals and N250,000 or less as households are now exempt from tax.

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Small businesses (companies with an annual turnover of N100 million and below and total fixed assets of N250 million or less) are exempted from all manner of taxes. Previously, the turnover threshold was N25 million.

The federal government’s VAT share was axed to 10 per cent from 15 per cent. States’ share was increased to 55 per cent from 50 per cent, while local governments’ share remains unchanged at 35 per cent.

States’ and local governments’ portions will be distributed according to user parameters, including 50 per cent (shared equally), 30 per cent (based on consumption location), and 20 per cent (based on population).