Withholding Tax in Nigeria

This guide thoroughly explains withholding tax (WHT) in Nigeria, catering to resident and non-resident companies (NRCs). Understanding WHT is crucial for ensuring compliance and avoiding potential penalties.

What is Withholding Tax (WHT)?

WHT acts as an advance payment of income tax on specific transactions in Nigeria. When a Nigerian resident company or individual makes certain payments, they must deduct a portion of the payment as WHT. This withheld amount is then remitted to the Federal Inland Revenue Service (FIRS) on behalf of the recipient. Download full article