Withholding Tax is an advance payment of income tax. In principle, WHT is a payment on account of the ultimate income tax liability of the taxpayer or company. The tax is normally to be deducted at source when a payment is to be made to the beneficiary. The residence of the taxpayer is generally not relevant for the purpose of determining liability to tax or the application of WHT, but it is important to consider whether the provider/supplier of the goods or services is liable to Nigerian tax. Types of payment applicable rates for individual Dividends, Interest, Rent 10%, Directors Fees 10%, Royalties 15%, Commission, Consultation, Technical, Service Fees 5%, Management fees 5%, Construction/Building Contracts 5%, Contracts, other than outright sales and purchase of goods in the ordinary course of business 5%.