Yes. Under di Deduction of Tax at Source (Withholding) Regulations 2024, client suppose withhold 5% on professional/consultancy fees or technical services, 10% on rent, 2% on general contracts or goods supply, 10% on dividends, 10% on interest, and 5% on royalties for individual (10% for company). Dis withholding tax (WHT) no be extra tax — na credit against wetin you owe when you file your annual return.
Dis rates dey di same whether dem pay you as registered company or as individual — no separate, lower rate dey for sole traders or freelancers. Di one exception na royalties, where individual dey pay 5% and company dey pay 10%; dis calculator dey use di individual rate.
| Transaction type | Rate |
|---|---|
| Professional/consultancy fees | 5% |
| Technical services | 5% |
| Rent | 10% |
| General contracts/goods supply | 2% |
| Dividends | 10% |
| Interest | 10% |
| Royalties | 5% |
No — na credit against wetin you owe when you file your annual return, e no be additional tax.
Di paying party go withhold di tax before dem pay you and dem go remit am on your behalf — enter either di invoice amount before withholding (gross) or di amount wey you want receive after withholding (net) and TaxLane go solve for di other one.
Yes, e free, no account dey needed. Di calculations dey run for your own phone or computer, dem no dey send am go any server.
No — na just guide, e no be tax advice.
E come from di Nigeria Tax Act 2025 — see full citations →
Not sure who actually withholds this, or why? Read the guide.