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
 
Failure to deduct and remit to the relevant tax authority attracts stiff penalty from the government. 

Comments

  1. nicewoody14 December 2014 at 08:59

    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.

    ReplyDelete
  2. obitaxanswer15 December 2014 at 03:22

    Thank you for your comment so far.
    The law in Nigeria stipulates 10% WHT for interest for both individual and company.
    Regards.

    ReplyDelete

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