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The short answer
Under Nigeria's Deduction of Tax at Source (Withholding) Regulations 2024, a company that pays rent deducts withholding tax at 10%, whether the landlord is resident or not, and pays you the other 90%. It must remit the tax and give you a receipt or credit note; that document is your proof of Nigerian tax for the foreign tax credit on your Canadian return.
Who deducts, and at what rate
The Withholding Regulations 2024 took effect on 1 July 2024. PwC's summary of them and its current Nigerian withholding tax table (reviewed May 2026) set rent at 10% for every category: resident and non-resident, corporate and individual landlords. The Regulations require everyone except individuals to deduct, so a company, a partnership or a government agency renting your flat or office is a deducting agent. An individual tenant is not.
- Small-company relief: a small company need not deduct where the transaction is under ₦2,000,000 and the landlord has a valid tax ID.
- No tax ID: the Regulations double the rate for vendors without a TIN, but PwC notes this does not apply to passive income. Whether a given tenant treats rent as passive is worth asking; give the tenant your tax ID so the question does not arise.
- Remittance: deducted tax goes to the federal tax authority by the 21st of the following month, or to the state authority by the 30th, depending on who the relevant authority is.
What the deduction looks like on your rent
Rent in Nigeria is often paid a year or more in advance, so the withholding comes in one lump.
| Example (illustrative) | Amount |
|---|---|
| Annual rent agreed for a Lekki office | ₦9,000,000 |
| Withholding tax at 10% | ₦900,000 |
| Paid to you | ₦8,100,000 |
If you received ₦8,100,000 and no paperwork, you have paid ₦900,000 of tax you cannot prove. That is why the credit note matters more than the payment itself.
The credit note: what to ask for
PwC's summary says the deductor issues a withholding tax receipt to the vendor and the vendor gets credit on presenting it. Ask your tenant, in the lease or a side letter, to send within a set time after each payment:
- The withholding tax receipt or credit note in your name, showing your tax ID.
- The gross rent, the tax deducted and the period covered.
- Proof of remittance to the tax authority (the authority's receipt or schedule reference).
Lagos tenants file withholding schedules on LIRS eTax, which Deloitte's 2019 note says shows withholding schedules and credit notes, so a registered landlord may be able to see credits there. Chasing missing credit notes from Nigerian payers is covered in depth in the Nigeria library: getting your withholding tax credit notes back.
Is the 10% the end of your Nigerian tax?
The sources we checked do not say that withholding on rent is a final tax for individual landlords. PwC states final status only for certain fees paid to non-resident companies, and says withholding is generally creditable unless the law makes it final. NiDCOM's diaspora guide says rent is subject to 10% withholding "regardless of where you live" and that anyone with Nigerian rental income must file. Treat the 10% as a payment on account: file the Nigerian return, set the credit notes against the assessed tax, and pay or reclaim the difference.
Using the credit note on your Canadian return
In Canada you report the gross rent, ₦9,000,000 in the example, not the ₦8,100,000 received, converted at the Bank of Canada rate, and deduct allowable expenses. The Nigerian tax is then claimed as a foreign tax credit (federal Form T2209, plus your provincial form). The CRA folio on the foreign tax credit says:
- The evidence for withheld foreign tax is the foreign tax slip, which here is the credit note.
- The credit is the lesser of foreign tax paid and Canadian tax on that income.
- Foreign tax is converted at the same rate as the income it relates to.
- Tax you were not required to pay is not creditable.
If your Nigerian assessment later shows a liability lower than the 10% withheld and you get a refund or credit, your creditable tax is the final amount. If the assessment adds tax, the extra counts once paid. The arithmetic of the credit, with a worked example, is in Lagos rental income and the Canadian credit; the case where Nigerian tax exceeds Canadian tax is in this article.
This is general information, not tax advice.
Where Pryme fits
Rent received into the NGN balance of a Pryme account gives a dated record of each net payment to match against credit notes. Statements can be generated as verifiable documents through our partner VerifyDoc.ai (receipts and statements), useful if the CRA asks you to tie gross rent, tax withheld and cash received together.
Questions people ask
What is the withholding tax rate on rent in Nigeria?
10% under the Deduction of Tax at Source (Withholding) Regulations 2024, for resident and non-resident, corporate and individual landlords.
Does my individual tenant have to deduct WHT on rent?
No. The Regulations require everyone except individuals to deduct. Rent from an individual is taxed through your own Nigerian return.
Is WHT on rent a final tax for a landlord abroad?
The sources we checked do not say so for individuals. Treat it as a credit against your assessed Nigerian liability and file a return.
Which figure goes on my Canadian return, gross or net rent?
Gross rent before withholding, converted to Canadian dollars. The withheld tax is then claimed as a foreign tax credit with the credit note as evidence.
Sources
- PwC Nigeria, Highlights of the Deduction of Tax at Source (Withholding) Regulations 2024 · accessed Oct 2026
- PwC Worldwide Tax Summaries, Nigeria – Withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- NiDCOM, NGEX Diaspora Guide to the Nigeria Tax Reforms 2026 (Jan 2026) · accessed Oct 2026
- Mondaq (Deloitte), LIRS introduces Enterprise Tax Administration System (eTax) (10 Oct 2019) · accessed Oct 2026
- CRA Income Tax Folio S5-F2-C1, Foreign Tax Credit (modified 31 Mar 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.