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What is the interest withholding rate between Nigeria and South Africa?
Under the Nigeria-South Africa tax treaty, the withholding rate on interest is 7.5%. Certain types of interest (such as government bonds) may qualify for additional exemptions under specific treaty articles. This 7.5% rate compares to a median of 12% across Nigeria's 3 active treaty partners, and 7.5% across South Africa's 37 active partners.
Network Comparison
Nigeria
Rank 1 of 3 active treaties (lowest rate = #1)
Higher rates with: United Kingdom (12%), Canada (12.5%)
South Africa
Rank 19 of 37 active treaties (lowest rate = #1)
Lower rates with: Switzerland (5%), Chile (5%), Saudi Arabia (5%)
Higher rates with: Singapore (7.5%), Greece (8%), Australia (10%)
Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.