Financial Q&A: Your Questions Answered
Search our comprehensive knowledge base or submit your own question. We provide clear, practical answers to real financial questions from Nigerian entrepreneurs.
Withholding Tax (WHT)
Showing 4 of 4 results
How do I calculate withholding tax on consultant fees?
To calculate Withholding Tax (WHT) on consultant fees in Nigeria, you must first identify if the consultant is a Resident or Non-Resident. Under the Deduction of Tax at Source (Withholding) Regulations 2024 (effective 2025/2026).
What is the deadline for remitting withholding tax and the penalties?
The Timeline for remitting the deducted tax to the NRS is by the 21st day of the following month. Under the Nigeria Tax Administration Act 2025 and the Deduction of Tax at Source (Withholding) Regulations 2024 (now effective in 2026), the rules and penalties have been sharpened to enforce digital compliance.
What happens to WHT if a small company is working with a supply contract morethan ₦2 million?
This is where the law gets tricky. There is a "policy contradiction" between the Nigeria Tax Act 2025 and the Withholding Tax (WHT) Regulations 2024. If the transaction is more than ₦2 million, the client is technically required to deduct WHT, even if you are a small company. Here is how that works and how you handle it:
How will the new tax reforms affect WHT for small business
Under the latest 2024/2025 regulations, if you are a Small Company (turnover ≤ ₦50m), you are generally exempt from having WHT deducted from your payments by your clients, provided you have a valid TIN and the transaction is ₦2m or less.