Transaction Details
WHT Breakdown
Nigeria WHT Rates 2026
All rates are final — the WHT credit note can be offset against the recipient's income tax liability.
| Transaction Type | Corporate (%) | Individual (%) |
|---|---|---|
| Dividends | 10% | 10% |
| Interest | 10% | 10% |
| Royalties | 10% | 10% |
| Rent | 10% | 10% |
| Directors' Fees | 10% | 10% |
| Contracts & Agency (Supply) | 5% | 5% |
| Contracts & Agency (Service) | 10% | 10% |
| Consultancy / Professional Fees | 10% | 10% |
| Management Fees | 10% | 10% |
| Technical / Service Fees | 10% | 10% |
| Commissions | 10% | 10% |
| Construction (Building/Civil) | 5% | 5% |
| Surveying / R&D | 5% | 5% |
| Charter / Hire of Equipment | 10% | 10% |
Source: FIRS WHT schedule; Nigeria Tax Act 2026 (signed 26 June 2025, effective 1 January 2026).
How Nigerian WHT Works
Payer Deducts WHT
When making a qualifying payment (rent, dividend, contract fee, etc.), the payer withholds the applicable percentage before transferring funds to the recipient.
Remit to FIRS
The withheld amount must be remitted to the Federal Inland Revenue Service (FIRS) within 21 days after the end of the month in which the deduction was made.
Issue Credit Note
The payer issues a WHT credit note to the recipient. This is evidence of the tax deducted and paid on the recipient's behalf.
Recipient Offsets Tax
The recipient uses the WHT credit note to offset against their annual income tax (CIT or PAYE) liability when filing their tax return. WHT is not an additional tax — it is a credit.
Frequently Asked Questions
Who is responsible for deducting WHT?
The payer (the party making the payment) is responsible for deducting and remitting WHT. If you are paying rent, a contractor, or a consultant, you must withhold the applicable rate and remit to FIRS.
Is WHT a final tax?
No. WHT is a payment on account of the recipient's income tax liability. The recipient collects a WHT credit note and uses it to offset their Company Income Tax (CIT) or personal income tax at year-end. Exceptions: dividends and interest paid to individuals are treated as final WHT under some interpretations — confirm with a tax adviser.
When must WHT be remitted to FIRS?
Within 21 days from the end of the month in which the deduction was made. For example, WHT deducted in July must be remitted to FIRS by 21 August. Late remittance attracts penalties and interest.
What happens if I don't deduct WHT?
Failure to deduct and remit WHT makes the payer liable for both the tax itself plus a penalty of 10% of the tax due per annum, plus interest at the CBN MPR. FIRS can also disallow the expense deduction for the payer.
Are there transactions exempt from WHT?
Yes. Transactions below ₦10,000 are generally exempt. Wages and salaries (covered by PAYE) are also excluded, as are goods purchased from a manufacturer's open market. Always confirm the specific transaction category with a FIRS guide or tax adviser.
What changed under the NTA 2026?
The Nigeria Tax Act 2026 (signed June 2025, effective 1 January 2026) largely retained the existing WHT rate schedule. The key changes were in the PAYE bands and CIT rates, not WHT. WHT obligations and rates remain as under CITA/PITA unless updated by subsequent FIRS guidelines.