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The short answer
A Ghana business paying a non-resident Nigerian contractor for goods, works or services withholds tax at 20%, the non-resident rate in PwC Ghana's July 2026 table, and pays it to the GRA within 15 days of the month's end. There is no Ghana-Nigeria tax treaty in force to reduce it, so the contractor bears the full domestic rate unless the contract grosses it up.
A Ghana company hiring a developer in Lagos, a designer in Abuja or an engineering firm in Port Harcourt hits a question its local suppliers never raise: what does the non-resident withholding rule do to the invoice? The short answer is that the rate is far higher than the 7.5% you deduct from a Ghanaian service firm, and that changes how you should write the contract.
Resident and non-resident rates side by side
| Payment | Resident supplier | Non-resident supplier |
|---|---|---|
| Services by an entity | 7.5% (above GH¢2,000 a year) | 20% |
| Works | 5% (above GH¢2,000 a year) | 20% |
| Goods | 3% (above GH¢2,000 a year) | 20% |
| Management and technical service fees | n/a | 20% |
| Royalties | 15% (natural resource payments) | 15% |
Figures from PwC Ghana's 2026 tax facts and figures (July 2026). The non-resident lines carry no GH¢2,000 threshold in the guide.
Why the treaty does not help
Ghana has 14 tax treaties in force, per PwC (July 2026), and Nigeria is not one of them. The GRA's June 2023 status table lists Nigeria as negotiations completed in 2018 with no entry into force, and PwC Nigeria's May 2026 summary says the ECOWAS treaties, Ghana included, have been ratified by Nigeria but not by the other side. More detail: Is there a double tax treaty between Ghana and Nigeria?.
The source question
Withholding applies to payments that have a source in Ghana. A contractor who flies to Accra to install a system is clearly working in Ghana. A developer who never leaves Lagos and delivers code by email is a harder case, and the rate table alone does not settle where that income is sourced. Ask your adviser, or the GRA, before the first invoice; if you under-deduct, the GRA can recover the tax from you as the payer.
A worked example
Example, for illustration only. A Nigerian agency quotes US$5,000 for a website, and your company treats the payment as subject to Ghana WHT.
- Contract silent on tax
- You withhold US$1,000 (20%) in cedi equivalent, pay it to the GRA, and send US$4,000. The agency receives 20% less than it expected.
- Contract says US$5,000 net of Ghana tax
- Gross fee = 5,000 ÷ 0.8 = US$6,250. Withholding = US$1,250. Your cost rises by US$1,250.
- Contract says the price is inclusive of any Ghana withholding
- You withhold US$1,000 and send US$4,000, with the contractor's agreement on record.
Pick one of these in writing before work starts. Most disputes with Nigerian contractors over Ghana tax come from the first case.
What the Nigerian contractor should know
Give the contractor the GRA receipt or withholding credit certificate. In Nigeria the fee is still income of the contractor; with no treaty, relief for the Ghana tax depends on Nigerian domestic rules. If roles are reversed and a Nigerian client pays a freelancer in Ghana, see Will my Nigerian client deduct withholding tax from my invoice?.
Paying in foreign currency
Nigerian contractors often quote in dollars or naira, while the GRA expects tax in cedis. Record the invoice in cedis at the rate on the day, compute the 20% on that cedi amount, and pay the GRA in cedis. Keep the rate you used and its source with the invoice. If the cedi moves between invoice date and payment date, the exchange difference is a separate accounting entry; PwC notes that unrealised exchange losses are not deductible for Ghana tax. If you buy dollars from a Ghanaian bank to pay the contractor, the bank's own charges apply on top: UBA Ghana's 2026 tariff guide, for instance, lists a commission of 1% plus a separate SWIFT charge on outward transfers, and a 3% PAPSS sending fee with a minimum of US$5 and a maximum of US$50. Check your own bank's current tariff before you pay.
Contractor or employee?
A Nigerian who works only for your company, on your hours, with your equipment and under your direction may look more like an employee than a contractor. That changes the analysis entirely: Nigerian PAYE and pension questions arise, covered in Does my Ghana company have to run Nigerian PAYE for staff?. If the relationship is long-term and full-time, review it before renewing the contract.
Checklist before you pay
- Is the contractor non-resident in Ghana? If it has a Ghana branch or office, the answer may change.
- Is the work performed in Ghana, or delivered from Nigeria? Settle the source position.
- Does the contract say who bears the Ghana tax?
- Have you budgeted for the WHT payment within 15 days after the month-end?
- Do you hold the invoice, the contract and the GRA receipt together for at least six years?
Where Pryme fits
Paying the contractor is the last step. The Pryme Business Account holds naira and dollars with local details, so a net-of-tax amount can be sent in the currency the contract names; the app shows the rate and the fee before you approve.
Questions people ask
What is the withholding tax on payments to non-residents in Ghana?
20% on goods, works, services and management or technical fees, per PwC Ghana's July 2026 table; 15% on royalties and rents; 8% on dividends and interest.
Does Ghana have a tax treaty with Nigeria?
Not in force. Negotiations finished in 2018, but Nigeria is not among the 14 treaties PwC lists as in force for Ghana in 2026.
Do I deduct Ghana tax if my Nigerian contractor works only from Lagos?
It depends on whether the payment is Ghana-source. Confirm with your adviser or the GRA before the first payment.
Can my Nigerian contractor claim back the Ghana withholding tax?
Not under a treaty, since none is in force. Any relief depends on Nigerian domestic rules; keep the GRA receipt.
Sources
- PwC Ghana: Navigating taxation, 2026 tax facts and figures (July 2026) · accessed Oct 2026
- Ghana Revenue Authority: Ghana's DTAs and status (6 Jun 2023) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (last reviewed 29 May 2026) · accessed Oct 2026
- UBA Ghana: Tariff Guide 2026 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.