WHT transactions in TaxStreem
Withholding Tax is deducted at source. When your business pays a vendor invoice, you deduct the applicable WHT rate and remit it directly to the tax authority. The vendor receives their payment net of WHT.
Calculation basis:WHT applies only to the net amount before VAT. If an invoice is ₦1,000,000 net + ₦75,000 VAT (gross ₦1,075,000) and WHT is 5%, the deduction is ₦50,000. The vendor receives ₦950,000 + ₦75,000 VAT = ₦1,025,000.
Remittance deadlines
- Corporate vendor (Ltd, Plc, LLP) → remit to NRS by the 21st of the following month
- Sole proprietor / business name / LP vendor → remit to State IRS by the 30th of the following month
- WVAT (Withholding VAT agents) → remit to NRS by the 14th of the following month
WHT rate schedule (NTA 2025)
Rates differ by recipient type (Corporate vs Non-Corporate) and residency (Resident vs Non-Resident):
| Transaction | Corporate Recipient | Non-Corporate Recipient | ||
|---|---|---|---|---|
| Resident | Non-Resident | Resident | Non-Resident | |
| Dividend, Interest | 10% | 10% | 10% | 10% |
| Royalty | 10% | 10% | 5% | 5% |
| Rent, Hire or Lease | 10% | 10% | 10% | 10% |
| Commission, consultancy, technical, management & professional fees | 5% | 10% | 5% | 10% |
| Supply of goods/materials (not by manufacturer) | 2% | N/A | 2% | N/A |
| Co-location & telecom tower services | 2% | 5% | 2% | 5% |
| Supply or rendering of services (not specifically listed) | 2% | 5% | 2% | 5% |
| Construction: roads, bridges, buildings, power plants | 2% | 5% | 2% | 5% |
| Any other construction and related activities | 5% | 10% | 5% | 10% |
| Brokerage fee | 5% | 10% | 5% | 10% |
| Directors' fees | N/A | N/A | 15% | 20% |
| Compensation for loss of employment | N/A | N/A | 10% | 10% |
WHT exemptions
The following do not attract WHT:
- Across-the-counter (instant cash/electronic) transactions with no prior contractual relationship
- Goods manufactured or produced by the supplier themselves
- Telephone charges, internet data, and airline tickets
- Insurance premiums
- Reimbursable out-of-pocket expenses (distinguishable from contract fees)
- Imported goods where the foreign supplier has no taxable presence in Nigeria
- Fuel supply: LPG, CNG, PMS, AGO, LPFO, DPK, JET-A1
- Commission retained by a broker from money collected on behalf of a principal