Yes. Under the Deduction of Tax at Source (Withholding) Regulations 2024, a client should withhold 5% on professional/consultancy fees or technical services, 10% on rent, and 2% on general contracts or goods supply. This withholding tax (WHT) isn't extra tax — it's a credit against what you owe when you file your annual return.
These rates are the same whether you're paid as a registered company or as an individual — there's no separate, lower rate for sole traders or freelancers.
| Transaction type | Rate |
|---|---|
| Professional/consultancy fees | 5% |
| Technical services | 5% |
| Rent | 10% |
| General contracts/goods supply | 2% |
No — it's a credit against what you owe when you file your annual return, not an additional tax.
The paying party withholds the tax before paying you and remits it on your behalf — enter either the invoice amount before withholding (gross) or the amount you want to receive after withholding (net) and TaxLane solves for the other.
Yes, it's free with no account needed. Calculations run on your device and are never sent to a server.
No — for guidance only, not tax advice.
Sourced from the Nigeria Tax Act 2025 — see full citations →
Not sure who actually withholds this, or why? Read the guide.