What to know about deducting WHT in Nigeria.
Withholding Tax (WHT) is a pre-payment of income tax which can be used to reduce tax liability.
It is necessary that business owner and company deduct WHT (WITHHOlDING TAX)  when making payments to contractors, consultant, interest owners and  ‘others’ and remit within 21days.

ROYALTIES                         10                  10
RENT                                   10                  10
DIVIDEND                          10                  10
INTEREST                           10                  10
COMMISSION                    10                   5
CONSULTANCY FEE         10                   5
TECHNICAL FEES              10                   5
MANAGEMENT FEE           10                  5
DIRECTORS FEE                  N/A               10
BUILDING CONSTRUCT     5                   5 
CONTRACT OF SUPPLIES  5                    5
Failure to deduct and remit to the relevant tax authority attracts stiff penalty from the government. 

The following  transaction is exempted from WHT in Nigeria-

  • Sale in the ordinary course of business.
  • Inter-bank interest.
  • All income exempted from income tax.
  • Redistributed dividends by holding company.
  • Interest on Bonds.
  • claims in insurance business.

TCONCEPT PROFESSIONAL SERVICES is a firm that specialized in tax consulting. For more information see or call +234 (0)8067922530.

Disclaimer: Obi Azubuike is not by this publication(or post) acting as a professional advisers and therefore not liable for any damage whatsoever for your acting or refraining to act based on  this publication(post). Consult your professional for advice. 

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