Withholding Tax (WHT) Schedules Calculator
Determines applicable statutory Nigerian Withholding Tax deductions across professional fees, consultancy, contracts, rent, dividends, and interest for corporate (FIRS) and individual (State IRS) payees.
Computational Framework & Statutory Formulas
WHT Amount = Gross Invoice Amount × Statutory WHT Rate (%)
Net Payable = Gross Invoice Amount - WHT Amount
Nigerian Economic & Statutory Context
Withholding Tax is an advance payment of income tax in Nigeria. Remittance for limited liability companies is made to the Federal Inland Revenue Service (FIRS) on or before the 21st of the following month, while payments for individuals, partnerships, and unregistered enterprises are remitted to the State Internal Revenue Service (SIRS) on or before the 30th.
Frequently Asked Questions (FAQ)
What are the typical Nigerian Withholding Tax rates for professional and consultancy services?
Under statutory schedules, professional and consultancy services attract 10% WHT for companies (FIRS) and 5% for individuals/enterprises (State IRS), though recent regulations provide targeted exemptions for manufacturing and small businesses.
Is Withholding Tax a final tax in Nigeria?
For most trade, contract, and professional services, WHT is not a final tax; it is an advance payment of income tax, and the deducted party is entitled to a WHT Credit Note to offset against final CIT or PIT. However, WHT on dividends, interest, and royalties for non-residents is generally treated as a final tax.
What is the statutory deadline for remitting WHT in Nigeria?
WHT deducted on corporate vendors must be remitted to the FIRS on or before the 21st day of the subsequent month. Deductions made from individuals must be remitted to the relevant SIRS on or before the 30th day of the subsequent month.