Withholding Tax Schedule (Nigeria)
WITHHOLDING TAX DEDUCTION SCHEDULE
Companies Income Tax Act (CITA) Cap C21 LFN 2004 | Personal Income Tax Act (PITA) Cap P8 LFN 2004 | Withholding Tax Regulations 2020 | Federal Inland Revenue Service
Withholder: [Withholder Name]
TIN: [Withholder TIN] RC Number: [RC Number]
Address: [Withholder Address]
Tax Period: [Period Month]
Remittance Due Date: [Remittance Due Date]
Schedule Date: [Schedule Date]
TRANSACTION 1
Payee Name: [Payee 1 Name]
Payee TIN / NIN: [Payee 1 TIN]
Nature of Payment: [Payment 1 Nature]
Date of Payment: [Payment 1 Date]
Gross Amount (NGN): [Payment 1 Gross Amount]
WHT Rate Applied: [Payment 1 WHT Rate]%
WHT Amount Deducted (NGN): [Payment 1 WHT Amount]
TRANSACTION 2
Payee Name: [Payee 2 Name]
Payee TIN / NIN: [Payee 2 TIN]
Nature of Payment: [Payment 2 Nature]
Date of Payment: [Payment 2 Date]
Gross Amount (NGN): [Payment 2 Gross Amount]
WHT Rate Applied: [Payment 2 WHT Rate]%
WHT Amount Deducted (NGN): [Payment 2 WHT Amount]
REMITTANCE SUMMARY
Total Gross Payments for Period: [Total Gross Payments]
Total WHT Deducted for Period: [Total WHT Deducted]
Date of Remittance to FIRS: [Remittance Date]
FIRS e-TaxPay Transaction Reference: [e-TaxPay Reference]
LEGAL BASIS AND OBLIGATIONS
This Withholding Tax Schedule is prepared pursuant to Section 81 of the Companies Income Tax Act (CITA), Cap C21, Laws of the Federation of Nigeria 2004 (as amended by the Finance Acts 2019–2023), and the Withholding Tax Regulations issued by the Federal Inland Revenue Service (FIRS).
[Withholder Name] (TIN: [Withholder TIN]) has deducted the above-stated withholding tax from payments made to the listed payees during [Period Month] and hereby confirms that the total withholding tax of [Total WHT Deducted] has been remitted to FIRS via the e-TaxPay portal (reference: [e-TaxPay Reference]) on or before the statutory due date of [Remittance Due Date].
WHT credit notes have been issued to each payee as evidence of the tax deducted at source. Payees may use these credit notes as credits against their own income tax assessments under Section 81(4) of CITA.
This schedule is retained as part of the company's statutory records for a minimum of 6 years in accordance with FIRS record-keeping requirements under Section 55 of CITA and shall be made available to the FIRS upon request.
CERTIFICATION
I, [Authorised Officer], being duly authorised by [Withholder Name], hereby certify that the information contained in this Withholding Tax Schedule is true, complete, and accurate to the best of my knowledge.
Signed: _______________________________
[Authorised Officer]
Date: [Schedule Date]
Company Seal (if applicable): _______________________________
Authorised Officer
________________
Signature
What Is a Withholding Tax Schedule (Nigeria)?
A Withholding Tax Schedule in Nigeria sets out the financial particulars the authority requires to assess the tax owed.
The legal basis for withholding tax in Nigeria is the Companies Income Tax Act (CITA), Cap C21, Laws of the Federation of Nigeria 2004 (as amended by the Finance Acts 2019, 2020, 2021, and 2023), for companies and corporate taxpayers. For individuals and partnerships, withholding tax is governed by the Personal Income Tax Act (PITA), Cap P8, LFN 2004 (as amended). The FIRS issues periodic regulations and circulars specifying applicable rates, including the Withholding Tax Regulations 2020 (Circular No. 2020/02) and the Finance Act 2020 amendments.
Withholding tax rates in Nigeria vary by transaction type and the residency status of the payee. Under CITA and the Withholding Tax Regulations, the standard rates include: 10% on dividends, interest, rent, and royalties paid to Nigerian resident companies; 5% on construction and survey contracts; 5% on technical, management, and consultancy fees paid to Nigerian resident companies; and 10% on all payments to non-resident companies under Section 78 of CITA, subject to any applicable Double Taxation Agreement (DTA). Nigeria has DTAs with the United Kingdom, South Africa, France, Canada, Pakistan, and several other countries that may reduce or eliminate WHT on cross-border payments.
A Withholding Tax Schedule differs from a PAYE (Pay As You Earn) schedule, which applies to employee salaries and wages under Schedule 6 of PITA. WHT applies to payments for services, contracts, dividends, interest, rent, and royalties — not to regular employment income. The two systems run in parallel and both require monthly remittance to the relevant tax authority.
The FIRS requires withheld tax to be remitted within 21 days of the end of the month in which the deduction was made, under Section 81 of CITA. State IRSs (for individuals resident in that state) impose similar deadlines. The withholder must issue a WHT credit note or certificate to the payee, who uses it as a credit against their own income tax assessment for the relevant year of assessment. Failure to remit WHT within the prescribed period attracts a penalty of 10% of the unpaid tax plus interest at the CBN minimum rediscount rate, under Section 80(3) of CITA.
The legal framework governing the Withholding Tax Schedule (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Withholding Tax Schedule (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Income Tax Act (Cap. C21, LFN 2004) sets the foundational requirements.
When Do You Need a Withholding Tax Schedule (Nigeria)?
A Withholding Tax Schedule in Nigeria is required by any company or individual that makes payments subject to WHT deduction under CITA, PITA, or the Withholding Tax Regulations.
A Withholding Tax Schedule is needed when a Nigerian company pays dividends to its shareholders — both resident and non-resident. Under Section 78 of CITA, dividends paid by Nigerian companies to resident companies attract WHT at 10%, while dividends paid to individuals attract 10% under PITA. Non-resident recipients are subject to the applicable treaty rate or 10% in the absence of a DTA.
A Withholding Tax Schedule is required when a business engages construction contractors or sub-contractors. Under the Withholding Tax Regulations, construction contracts attract WHT at 5% for Nigerian resident companies and 10% for non-residents. Engineering, procurement, and construction (EPC) contracts commonly encountered in Nigeria's oil and gas sector under Department of Petroleum Resources (DPR) and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) regulations also fall under this category.
A Withholding Tax Schedule is needed when a company pays technical, management, or consultancy fees to Nigerian or foreign service providers. Technology companies providing software licences, SaaS platforms, or IT consulting to Nigerian businesses must have WHT deducted at 5% (residents) or 10% (non-residents) under the Finance Act 2021 amendments to CITA.
A Withholding Tax Schedule is required when a company pays rent for commercial or industrial premises. WHT at 10% applies to rent payments to resident landlords and corporate property owners, with the withholder obliged to deduct and remit to FIRS or the relevant state IRS on behalf of the landlord.
A Withholding Tax Schedule is needed when interest payments are made on loans, bonds, or debentures. Financial institutions — licensed by the Central Bank of Nigeria (CBN) under the Banks and Other Financial Institutions Act (BOFIA) 2020 — and corporate borrowers must deduct WHT on interest payments to lenders.
A Withholding Tax Schedule is required at year-end when preparing the company's annual tax return for FIRS. The schedule serves as supporting documentation for the total WHT deducted and remitted during the financial year, reconciling with the company's financial statements and the FIRS e-TaxPay remittance records.
Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters.
What to Include in Your Withholding Tax Schedule (Nigeria)
A complete Nigeria Withholding Tax Schedule must contain the following essential elements to satisfy FIRS requirements under CITA and the Withholding Tax Regulations.
Company identification: The full registered name of the withholder, its Tax Identification Number (TIN) issued by FIRS, CAC registration number (RC number), and the relevant accounting period (month and year) covered by the schedule. Every FIRS filing must quote the withholder's TIN, which is assigned upon registration under Section 8 of the FIRS (Establishment) Act 2007.
Payee details: For each transaction, the full legal name of the payee (recipient), the payee's TIN or National Identity Number (NIN) for individuals, and the payee's address. Under the Finance Act 2020, FIRS has intensified its enforcement of TIN requirements for payees — payments to payees without a valid TIN may attract additional penalties.
Payment description: A clear description of the nature of the payment — for example, "consultancy fee", "construction contract payment", "dividend", "rent", "royalty", or "interest". The payment description determines the applicable WHT rate under CITA or PITA, so precision is critical to avoid under-deduction.
Gross payment amount: The full gross payment amount in Nigerian Naira (NGN) before any deduction, VAT, or other adjustment. Under Section 81 of CITA, WHT is calculated on the gross amount of the qualifying payment.
WHT rate applied: The percentage rate of WHT applied, referenced to the applicable provision of CITA, PITA, or the Withholding Tax Regulations. Where a Double Taxation Agreement (DTA) rate applies — for example, the UK-Nigeria DTA reducing dividends WHT to 7.5% — the DTA article and rate must be stated.
WHT amount deducted: The naira amount of WHT deducted from each payment, calculated as the gross payment multiplied by the applicable rate. The total WHT deducted for the period must be reconciled against the remittance made to FIRS via the e-TaxPay portal.
Remittance details: The date of remittance to FIRS or the relevant state IRS, the e-TaxPay transaction reference number, and the FIRS assessment number (if applicable). Under Section 81(3) of CITA, WHT must be remitted within 21 days after the end of the month of deduction.
WHT credit note reference: The reference number of the WHT credit note or certificate issued to the payee, confirming the amount deducted. The payee uses this credit note when filing their own annual tax return with FIRS or the relevant state IRS to claim credit for the WHT deducted at source under Section 81(4) of CITA.
Authorised signatory: The name, designation, and signature of the authorised officer of the withholder company — typically the Finance Director, Chief Financial Officer, or Tax Manager — confirming the accuracy of the schedule. The schedule must be retained for a minimum of 6 years under FIRS record-keeping requirements.
Additional compliance elements for a Withholding Tax Schedule (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Withholding Tax Schedule (Nigeria) (Nigeria) [Legal document template]. Forms Legal. https://forms-legal.com/nigeria/financial/forms/withholding-tax-schedule-nigeria
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author = {{Forms Legal}},
title = {Withholding Tax Schedule (Nigeria) (Nigeria)},
year = {2026},
howpublished = {\url{https://forms-legal.com/nigeria/financial/forms/withholding-tax-schedule-nigeria}},
note = {Free legal document template. Based on Companies Income Tax Act (Cap. C21, LFN 2004)}
}Frequently Asked Questions
Withholding tax rates in Nigeria under the Companies Income Tax Act (CITA) and the Withholding Tax Regulations vary by payment type and payee residency. For Nigerian resident companies: dividends — 10%; interest — 10%; rent — 10%; royalties — 10%; directors' fees — 10%; technical, management, and consultancy fees — 5%; construction and survey contracts — 5%; agency and commission — 5%. For individuals under PITA: dividends — 10%; interest — 10%; rent — 10%; consultancy — 5%; construction — 5%. Non-resident companies and individuals are generally subject to 10% on all categories unless a Double Taxation Agreement (DTA) between Nigeria and the payee's country provides a lower rate. For example, the Nigeria-UK DTA reduces the WHT rate on dividends to 12.5% and interest to 7.5%. The Finance Act 2021 introduced WHT on digital services payments. All rates are subject to amendment by subsequent Finance Acts, and the FIRS issues annual circulars confirming current rates.
Under Section 81(3) of the Companies Income Tax Act (CITA), Cap C21 LFN 2004, withholding tax deducted by a Nigerian company must be remitted to the Federal Inland Revenue Service (FIRS) within 21 days after the end of the month in which the deduction was made. For example, WHT deducted during April must be remitted by 21 May. For individuals and partnerships governed by PITA, the same 21-day deadline applies under the equivalent provisions of PITA. Remittance must be made via the FIRS e-TaxPay portal at etaxpay.firs.gov.ng, generating a payment reference that serves as proof of remittance. Late remittance attracts a penalty of 10% of the unpaid tax amount plus interest at the Central Bank of Nigeria (CBN) minimum lending rate per annum under Section 80(3) of CITA. The FIRS may also issue a demand notice and proceed to recovery action under Section 104 of CITA for persistent non-remittance.
In Nigeria, withholding tax is generally not a final tax — it is an advance payment of the payee's income tax liability, creditable against the payee's annual income tax assessment. Under Section 81(4) of CITA, the WHT deducted at source is offset against the payee company's Companies Income Tax (CIT) assessment for the relevant year of assessment when the payee files its annual CIT return with FIRS. If the WHT credit exceeds the CIT liability, the payee can apply for a WHT credit note refund from FIRS. However, for non-resident companies without a permanent establishment in Nigeria, WHT on dividends, interest, royalties, and technical fees constitutes a final tax under Section 78 of CITA — the non-resident has no further Nigerian tax obligation on those payments. Similarly, for individuals, WHT on dividends under PITA is treated as a final tax in practice, though technically creditable against income tax.
Yes. Value Added Tax (VAT) under the Value Added Tax Act (Cap V1, LFN 2004, as amended by the Finance Acts) applies separately and in addition to withholding tax on qualifying transactions in Nigeria. The standard VAT rate is 7.5% (increased from 5% by the Finance Act 2019). VAT is charged on the supply of taxable goods and services, including consultancy fees, construction services, and management fees. The payment mechanics work as follows: the payee invoices the withholder for the gross fee plus 7.5% VAT; the withholder deducts WHT from the gross fee amount (not the VAT amount) and remits WHT to FIRS; the withholder also retains 7.5% VAT and remits it to FIRS as a VAT-registered agent under the reverse charge provisions applicable to transactions with non-resident service providers under the Finance Act 2019. The payee receives: gross payment minus WHT, plus VAT (which the withholder remits to FIRS on their behalf). The withholder issues both a WHT credit note and a VAT deduction certificate.
Failure to deduct withholding tax in Nigeria exposes the withholder to significant penalties under the Companies Income Tax Act (CITA) and the FIRS (Establishment) Act 2007. Under Section 80(3) of CITA, failure to deduct attracts a penalty equal to the tax that should have been deducted, plus interest at the CBN minimum lending rate. The withholder who fails to deduct remains personally liable for the undeducted tax — FIRS cannot pursue the payee for the withholder's failure. For failure to remit WHT already deducted, Section 80(3) of CITA imposes a 10% penalty on the unpaid amount plus interest. Under Section 29 of the FIRS (Establishment) Act 2007, FIRS officers may distrain on the withholder's assets (levy execution without a court order) to recover unpaid WHT. FIRS can also issue a notice to a bank to pay withheld tax directly from the withholder's account under Section 49 of CITA. Directors of a company that fails to remit WHT may face personal liability under Section 31 of the FIRS (Establishment) Act 2007.
Withholding tax on payments to foreign (non-resident) companies in Nigeria is governed by Section 78 of CITA. A Nigerian company or individual making payments for dividends, interest, royalties, technical fees, management fees, or consultancy fees to a non-resident company must deduct WHT at 10% on the gross payment amount, unless a lower rate applies under a Double Taxation Agreement (DTA). Nigeria has active DTAs with the United Kingdom (rates: dividends 12.5%, interest 7.5%, royalties 7.5%), South Africa, France, Canada, China, and several other countries. To claim a DTA-reduced rate, the non-resident payee must provide a certificate of tax residence from its home country's tax authority. The withholder remits the deducted WHT to FIRS via e-TaxPay within 21 days after the end of the month of payment. For non-residents without a permanent establishment in Nigeria, WHT constitutes a final tax on Nigerian-source income under Section 78(2) of CITA, with no further Nigerian corporate income tax obligation on those payments.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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