For introducers · 4 min read
Withholding tax on referral commission: what introducers should know
A plain-language overview of withholding tax on commission in Nigeria, why your TIN matters, and what records to keep.
This is general guidance
This article explains the idea, not your personal tax position. Rates and rules are set by the Nigeria Revenue Service (NRS) and state tax authorities and can change. Speak to a tax adviser about your own situation.
What withholding tax is
Withholding tax (WHT) is an advance payment of income tax. When certain payments such as commissions are made, part of the amount is deducted and paid to the tax authority on your behalf. It is not an extra charge: it can usually be credited against the income tax you owe.
Why your TIN matters
Your Tax Identification Number (TIN) links the tax deducted to you. Without a verified TIN, deductions may be made at a higher rate and are harder to claim back. TINs come in different formats, numbers only or letters and numbers, so enter yours exactly as issued.
Records to keep
Keep every payout receipt and statement. Your Vouchd workspace lists each commission, the amount withheld and the amount paid to you, and you can download them for your records or your adviser.
Your relationships are worth more than a thank-you.
Introducers never pay anything.