Professional, consultancy, management and technical fees, and commissions, attract 5% withholding tax when paid to Nigerian residents (10% for non-residents). Enter the fee before VAT below to get the WHT to deduct and what the consultant receives.
How the WHT on Professional Fees Calculator works
- Enter the fee before VAT.
- Professional, consultancy, management, technical fees and commission is selected at 5%.
- Choose whether the consultant is a company or a person.
- Get the WHT and the net fee.
Worked example
A small business pays a freelance web consultant ₦850,000 for a project.
WHT at 5%: ₦42,500
Pay the consultant: ₦807,500
The consultant keeps the credit note and uses it when filing personal income tax.
Common mistakes to avoid
- Applying 10% to a resident consultant
- Forgetting WHT on commissions paid to agents
- Not keeping credit notes as a freelancer
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For freelancers and consultants
If clients deduct 5% from your fees, you are not losing that money as long as you keep the credit notes. Your income tax for the year is worked out on your full profit, and the WHT already paid is taken off the tax due.
Non-resident consultants
Fees paid to consultants outside Nigeria attract 10% WHT, which is generally a final tax. Treaties can change the rate, so check with an adviser for foreign payments.
Frequently asked questions
What is the WHT rate on consultancy in Nigeria?
5% for residents, companies or individuals. 10% for non-residents.
Is commission subject to WHT?
Yes. Commission is in the same 5% category as professional fees.
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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