WHT(WITHHOLDING TAX) IN NIGERIA
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.
RATE OF WHT COMPANY% INDIVIDUAL%
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
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-
TCONCEPT PROFESSIONAL SERVICES is a firm that specialized in tax consulting. For more information see www.tconceptpro.com 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. |
Hello Great Blogger, Please what is the right WHT deduction on interest paid to individuals and companies? I have two fixed deposit investments, one on my personal savings account and the other on my company account (LTD). When ever interest due is paid, they are both subjected to 10% WHT deduction. Are both WHT deductions suppose to be at par? Shouldn't the deduction on the individual account be lower? In total appreciation, I await your professional and intellectual response. Thank you.
Thank you for your comment so far.
The law in Nigeria stipulates 10% WHT for interest for both individual and company.
Regards.