Withholding Tax Rates in Nigeria: A Practical Guide
Updated February 20, 2023
In Nigeria, withholding tax is not your typical income tax. It's an advance payment of income tax on specific transactions, designed to reduce the tax liabilities of a taxpayer. This prepaid tax was introduced to reduce tax evasion, and is charged at a rate of 5%-10% depending on the type of transaction or income. And here's what that means for you.