Nigeria

Corporate - Withholding taxes

Last reviewed - 17 July 2020

WHT is applicable on specified transactions as indicated below. There is no distinction between the WHT rates for resident companies or individuals and non-resident companies or individuals.

Types of payment WHT for companies (%) WHT for individuals (%)
Dividends, interest, and rents 10 10
Directors fees N/A 10
Hire of equipment 10 10
Royalties 10 5
Commission, consultancy, technical, service fees 10 5
Management fees 10 5
Construction (Roads, Building, Road and Bridges) 2.5 5
Contracts other than sales in the ordinary course of business 5 5

The period for filing WHT is 21 days after the duty to deduct arose for deductions from companies.

The penalty for failure to deduct or remit tax is 10% of the amount not deducted/remitted.

Note that companies are required to submit, in electronic form, a schedule of all their suppliers for the month showing the tax identification number (TIN), address of the suppliers, the nature of the transaction, WHT deducted, and invoice number.

Double tax treaties (DTTs)

Nigeria has DTTs with the countries listed in the table below. Nigeria also has tax treaties with Kenya, Mauritius, and Poland; however, these treaties have not been ratified by the Nigerian National Assembly. The tax treaties with South Korea, Spain, and Sweden are still in the process of being ratified.

Recipient WHT (%)
Dividend Interest Royalties Management/Technical fees
Non-treaty 10 10 10 10
Treaty:        
Belgium 7.5 7.5 7.5 10
Canada 7.5 7.5 7.5 10
China 7.5 7.5 7.5 10
Czech Republic 7.5 7.5 7.5 10
France 7.5 7.5 7.5 10
Netherlands 7.5 7.5 7.5 10
Pakistan 7.5 7.5 7.5 10
Philippines 7.5 7.5 7.5 10
Romania 7.5 7.5 7.5 10
Slovakia 7.5 7.5 7.5 10
South Africa 7.5 7.5 7.5 10
South Korea * 7.5 7.5 7.5 10
Spain 7.5 7.5 7.5 10
Sweden * 7.5 7.5 7.5 10
United Kingdom 7.5 7.5 7.5 10

* The tax treaties with South Korea and Sweden are still being ratified.