Withholding Tax

NGN 20,000.0

15 days

Tax Returns

File this service

Description

Information about the compliance service

 Withholding Tax is an advance tax deducted at source from certain types of payments made to individuals or companies. It is withheld by the payer and remitted directly to the relevant tax authorities. 

Withholding tax applies when individuals receive the following kinds of payments and the rates may vary depending on the nature of payment:
  • Rents on properties (10%).
  • Dividends/Profits from companies (10%).
  • Interest on bank deposits or securities (10%).
  • Royalties (5%).

In Nigeria, withholding tax is applicable to various types of transactions, including but not limited to:
  • Contracts for construction, surveys, and supply.
  • Consultancy and professional services.
  • Dividends, interest, and royalty payments.
  • Rent for the use of land, buildings, or other assets.


Requirements

Info and documents needed for this service

To file withholding tax returns, you will typically need the following documents:
  1. Completed withholding tax return forms (manual or electronic).
  2. Supporting documents such as invoices, receipts, or contracts that substantiate the transactions subject to withholding tax.
  3. Bank statements reflecting the net payments received after withholding tax deductions.
  4. Tax identification number (TIN) or registration number for both the payer and the recipient.
  5. Withholding tax computation sheet.
  6. Payment of outstanding WHT liabilty (if any).
  7. Tax payment made.

Process

Steps involved in this compliance service

  1. Provide the necessary documents.
  2. Fill the applicable form.

FAQs

Frequently asked questions about this service

1. How often should i file WHT returns?
Monthly, quarterly or annually (depending on income type).
2. Can i claim relief on WHT?
Yes, for taxes already paid.
Back to compliance services