Free WHT tool

Withholding Tax Calculator — Nigeria FIRS

Find the correct WHT rate for any service type and calculate exactly how much to withhold before paying your vendor or contractor. Deduct the right amount — avoid FIRS penalties.

5–10%FIRS WHT rates
21stRemittance deadline
FreeFor Nigerian businesses
WHT Calculator
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FAQs

WHT questions Nigerian businesses ask

What is Withholding Tax (WHT) in Nigeria?
WHT is an advance payment of income tax deducted at source by the payer before remitting payment. The vendor receives less cash but gets a WHT credit note they use to reduce their annual tax bill. It prevents tax evasion by collecting tax at the transaction point.
Who deducts and remits WHT — the buyer or the seller?
The payer (buyer) deducts WHT before sending payment and remits it directly to FIRS. The vendor (seller) does not handle WHT on these transactions — they simply receive the net amount and the WHT credit note.
What is the penalty for not remitting WHT on time?
Late WHT remittance attracts a penalty of 10% of the outstanding WHT amount plus interest at the CBN's prevailing minimum rediscount rate. FIRS can also audit your records and assess back-WHT on past payments.
Does WHT apply to all payments to vendors?
No. WHT applies to specific categories of payments as defined by FIRS — professional services, construction, rent, interest, royalties, commissions, and supply contracts. Payments for ordinary goods purchases at a shop or market are generally not subject to WHT.
Can a vendor refuse to accept a WHT deduction?
No. WHT is a statutory obligation. If your business is required to deduct WHT on a payment, you must do so regardless of the vendor's preference. Failing to deduct makes you liable for the WHT amount plus penalties.

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