Withholding tax (WHT) is deducted from certain payments and paid to the tax authority on the supplier's behalf. Under the 2024 regulations, common rates for Nigerian residents are 2% for goods, general services and building work, 5% for professional, consultancy and similar fees, and 10% for rent, dividends and interest. Choose the payment type below to get the exact figure.
How the Withholding Tax Calculator works
- Enter the payment amount before VAT.
- Choose what the payment is for and whether the receiver is a company or a person.
- The WHT rate fills in from the 2024 regulations. You can change it.
- You get the WHT to deduct and the amount to pay the supplier.
Worked example
A company pays an accounting firm ₦1,500,000 (before VAT) for audit support. Professional fees attract 5% WHT.
WHT: ₦1,500,000 × 5% = ₦75,000
Pay the firm: ₦1,425,000 plus any VAT on the invoice
The company pays the ₦75,000 to the tax authority and gives the firm a credit note.
Common mistakes to avoid
- Deducting WHT on the VAT part of an invoice
- Using an old rate (for example 10% on contracts) from before the 2024 regulations
- Deducting WHT but not paying it to the tax office or issuing a credit note
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Who must deduct WHT
Companies, government agencies and some other payers deduct WHT when they pay suppliers. Under the 2024 regulations, small companies do not have to deduct WHT on payments under ₦2 million to suppliers with a valid TIN. If you are unsure whether a payment needs WHT, check with a tax adviser.
If you are the one being paid
WHT deducted from your payment is a credit, not a loss. Collect the credit notes and use them when you file your income tax. Without them, you may pay the same tax twice.
Frequently asked questions
What is the WHT rate on rent in Nigeria?
10% of the rent, for both companies and individuals.
Do individuals pay a different WHT rate?
For most payments the rate is the same. Royalties to individuals are 5%, and directors' fees are 15%.
What happens to the tax I deduct?
You pay it to the tax authority by the deadline and give the supplier a receipt or credit note, so they can use it against their own income tax.
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