Withholding Tax (WHT) in Nigeria: Rates and Estimates

Short answer: Withholding tax is deducted at source on certain payments (rent, fees, contracts, dividends, interest, and more). Rates differ for individuals and companies. WHT is usually an advance payment of income tax, not an extra cost on top.

Common payment categories

Examples you can model:

• Rent
• Professional and technical fees
• Contract services
• Dividends and interest
• Directors' fees

Select whether the payee is an individual or a company; the rate may change.

WHT is not always final tax

Recipients often credit WHT against annual tax liability. Keep WHT credit notes. The calculator explains this in results.

Before you pay a vendor

Estimate WHT on the gross payment so you know the net to recipient and the amount to remit. Confirm the correct category with your adviser; misclassification is a common audit issue.

Try the WHT calculator

Use Staff Pay Tax Calculator — WHT mode.

Sources reviewed

• Nigeria Tax Act 2025 — withholding tax provisions
• Staff Pay Tax Calculator WHT category notices (counsel-reviewed, September 2026)

Educational only. Not remittance confirmation.