Withholding TaxCalculator
Calculate WHT on payments with automatic rate adjustments for residency and TIN status.
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WHT Calculation Results
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Fill in the form to calculate withholding tax obligations
WHT Key Information
- Small companies (turnover <₦25M) may be exempt if monthly transactions ≤₦2M
- WHT deducted counts as credit against recipient's final tax liability
- Rates double for recipients without TIN (non-passive income only)
- Must be remitted by 21st (Federal) or month-end (State)
Frequently Asked Questions
Withholding Tax is an advance payment of income tax deducted at source when certain payments are made. The payer deducts WHT from the gross payment and remits to FIRS. It serves as advance tax credit for the recipient against their final tax liability.
WHT rates vary by payment type: Dividends (10%), Interest (10%), Royalties (10%), Rent (10%), Commission/Consultancy (10%), Technical/Management Fees (10%), Directors Fees (10%), Construction (5%), and Contracts (5%). Non-residents typically pay higher rates.
Exemptions include: Government agencies, organizations with tax exemption certificates, small companies under the SME exemption (turnover <₦25M and monthly transactions <₦2M), payments below certain thresholds, and certain transactions covered by double taxation treaties.
If the payment recipient doesn't have a Tax Identification Number (TIN), an additional 5% WHT applies on top of the standard rate for non-passive income. This incentivizes tax registration and compliance.
WHT must be remitted to FIRS within 21 days from the date of deduction for companies. State WHT must typically be remitted by month-end. Late remittance attracts 10% penalty plus interest charges.
Yes, WHT is a credit against final tax liability. Recipients can use WHT credit notes to offset their annual income tax. If WHT exceeds actual tax due, the excess can be refunded or carried forward.