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Keeping track of Withholding Tax (WHT) rates is vital for any Nigerian business. Under the 2026 fiscal reforms, the government has adjusted several rates to encourage certain sectors while increasing revenue from others. Using the wrong rate can lead to under-remittance, which triggers automated fines on the TaxPro Max portal.
Current WHT Rate Table for 2026
Here are the most common rates currently in use:
- Dividend, Interest, and Rent: 10% for both companies and individuals.
- Consultancy, Professional, and Technical Fees: 10% for companies; 5% for individuals.
- Contracts for Construction and Repairs: 5%.
- All Aspects of Building and Construction: 2.5% (Special incentive rate for 2026).
- Commission and Management Fees: 10% for companies; 5% for individuals.
For more details on how these fit into your annual returns, check out Company Income Tax in Nigeria Explained. If you are an SME, ensure you see the Complete Nigeria Business Tax Guide for SMEs and Startups.
Crucial 2026 Rule: The ‘No TIN’ Penalty
In 2026, the Nigeria Revenue Service (NRS) mandates that any vendor without a valid TIN must be taxed at double the standard rate. For example, a 5% contract deduction becomes 10%. This is part of the broader push for transparency. To learn how to manage these filings, read Filing Withholding Tax Returns in Nigeria.
Practical Tip for Businesses
Always request a Tax Clearance Certificate (TCC) or a TIN verification from your vendors before making payments. This ensures you apply the correct rate. For the most up-to-date legal circulars, visit the NRS official website or the Proshare Nigeria tax section.”