Nigeria Withholding Tax (WHT) Calculator
Simplify Your Tax Compliance
Navigating Nigeria's tax landscape can be complex. Our intuitive WHT calculator helps businesses and individuals accurately compute their tax liabilities on various transactions, ensuring compliance with the latest Nigerian tax laws.
Nigerian Withholding Tax (WHT) Calculator
Why Use Our Nigeria WHT Calculator?
Accuracy & Compliance
Leverage up-to-date tax rates and regulations to ensure precise WHT calculations, minimizing errors and penalties.
Time-Saving
Instantly calculate WHT for various transactions, freeing up valuable time spent on manual computations.
Clarity & Understanding
Gain clear insights into how WHT is applied to your specific income streams or payments.
Informed Decision-Making
Plan your finances better with a clear understanding of your tax obligations.
What is Withholding Tax (WHT) in Nigeria?
Withholding Tax (WHT) is an advance payment of income tax, deducted at source from certain types of income or transactions. It is a crucial aspect of the Nigerian tax system, applied to payments for services, contracts, rent, dividends, interest, and more.
The applicable rates and the party responsible for deducting and remitting the tax vary depending on the nature of the transaction and the parties involved. The Nigeria Tax Act, 2025 specifies various ad valorem and fixed duties for numerous instruments, indicating different rates and liable parties for different transaction types.
For non-resident companies with a taxable presence in Nigeria, the tax payable cannot be less than the applicable WHT rate for the income, or 4% of the income.
How It Works
Select Transaction Type
Choose the category of income or payment (e.g., professional fees, rent, dividends, contracts)
Enter Amount
Input the gross amount of the transaction in Naira
Calculate
Our tool instantly applies the relevant WHT rate to provide results
Understand Your Obligation
See the WHT amount, net payment, and who is responsible for deduction
Key Features
Withholding Tax Rates in Nigeria
| Transaction Type | Company Rate | Individual Rate |
|---|---|---|
| Dividends, Interest, Royalties | 10% | 10% |
| Rent (Property) | 10% | 10% |
| Professional Fees, Consultancy, Management Fees | 10% | 5% |
| Director's Fees, Commission | 10% | 10% |
| Construction / Building Contracts | 5% | 5% |
| Contract of Supply (Goods) | 5% | 5% |
| Agency Arrangements | 10% | 10% |
* Non-resident rates may differ. Double Taxation Agreements (DTAs) may provide reduced rates for qualifying recipients.
Who Can Benefit?
Businesses
Small, medium, and large enterprises making payments subject to WHT can ensure accurate deductions and timely remittance.
Individuals
Self-employed professionals, landlords, and others receiving income subject to WHT can understand their net receipts.
Accountants & Tax Practitioners
A handy tool for quick verification and client advisories on WHT obligations.
Non-Resident Companies
Determine minimum tax obligations where WHT rates apply to Nigerian-sourced income.
Key Facts About Nigerian WHT
WHT Exemptions and Special Cases
- -Government entities making payments to other government entities
- -Dividends paid out of petroleum profits (subject to Petroleum Profits Tax)
- -Interest on government bonds and treasury bills
- -Goods purchased by companies in the ordinary course of business (with exceptions)
- -Payments to tax-exempt organizations (with valid exemption certificates)
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Important Disclaimer:
This calculator uses standard Nigerian WHT rates as per current tax laws including the Nigeria Tax Act, 2025. Actual rates may vary based on recipient status (individual vs. company, resident vs. non-resident), Double Taxation Agreements (DTAs), specific exemptions, and transaction thresholds. Rates can vary based on specific contract terms and ongoing changes in tax law (e.g., Finance Acts). Always consult the latest FIRS circulars or a qualified tax professional for accurate WHT obligations.