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In 2026, Nigerian businesses frequently hire foreign experts or export services abroad. This ‘Cross-Border’ flow is governed by strict Withholding Tax (WHT) and Value Added Tax (VAT) rules designed to prevent capital flight while encouraging trade.
Key Provisions for 2026
- WHT on Foreign Payments: When paying a non-resident for technical services, you must deduct 10% WHT. This can be reduced to 7.5% if a Double Taxation Agreement (DTA) exists.
- Exported Services: Services provided by Nigerians to clients abroad are generally ‘Zero-Rated’ for VAT, meaning you don’t charge 7.5%.
- Significant Economic Presence (SEP): Foreign firms with no office in Nigeria but high digital revenue are now taxed under CIT.
Understanding these rules is vital for tax planning. For a list of DTA partner countries, visit the NRS website or refer to PwC’s International Tax Summary.”