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Deduction at Source

Withholding Tax Calculator

Calculate WHT for dividends, professional services, rent, contracts, and more. Rates range from 5% to 10%.

Payment Details

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Calculate WHT

Enter a payment amount and select the category to calculate withholding tax.

Nigeria Withholding Tax (WHT) Guide

Withholding Tax (WHT) is a mechanism for collecting income tax at source. When making certain payments, the payer is required to deduct WHT and remit it to the NRS (formerly FIRS). The recipient can offset WHT deducted against their final tax liability.

WHT Rates by Category

Payment TypeRate
Dividends, Interest, Royalties10%
Rent (Property & Equipment)10%
Professional/Technical Services10%
Director Fees, Commission10%
Construction Contracts5%
Supply of Goods5%

Learn more about tax deductions with our PAYE Calculator or explore the Tax Glossary.

Frequently Asked Questions

WHT is an advance payment of income tax deducted at source. It is a collection mechanism, not a separate tax. The amount deducted can be credited against the recipient's final tax liability.
Companies, government agencies, and individuals making payments subject to WHT must deduct and remit the tax to NRS within 21 days.
Yes, WHT deducted is an advance payment. You can offset it against your final income tax or CIT liability when filing your annual return.
Payments to government, interbank transactions, and certain exempt organizations are not subject to WHT. Payments below certain thresholds may also be exempt.
Non-residents are subject to the same WHT rates as residents for most categories. However, non-residents may not be able to offset WHT against Nigerian taxes if they have no tax liability here.
Disclaimer:WHT is an advance payment of income tax and can be offset against final tax liability. Consult the NRS (formerly FIRS) for official guidance.
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