Withholding Tax (WHT) Filing in Nigeria
Deduct, remit and file withholding tax correctly every month, with schedules prepared and deadlines tracked for you.
Who Must Deduct and Remit Withholding Tax?
Withholding tax (WHT) is an advance payment of income tax. When a business pays for certain goods, services or other payments, it must deduct a percentage at source, pay the balance to the supplier, and remit the deducted amount to the tax authority. The supplier then uses the WHT credit note against their own income tax.
Any company or organisation that makes qualifying payments, such as contracts, consultancy, rent, commissions, dividends or interest, acts as a withholding agent and carries this obligation. There is no turnover threshold for being a withholding agent.
The rate depends on the nature of the payment and whether the payee is a company or an individual, so every payment on your schedule needs to be classified correctly.
- Who deducts
- The payer (withholding agent)
- Return frequency
- Monthly
- Remittance deadline
- 21st of the following month
- Supporting document
- WHT schedule
How WHT Remittance and Filing Works
- 1
Identify payments subject to WHT
Review the month’s payments to suppliers, contractors, landlords and consultants to decide which attract withholding tax.
- 2
Deduct WHT at the correct rate
Apply the rate for the nature of payment and the type of payee, and pay the supplier the amount net of WHT.
- 3
Prepare the WHT schedule
List each payee, nature of payment, amount, rate and tax withheld. ComplyDesk provides a schedule template you fill in and upload.
- 4
Remit and file by the 21st
Remit the deducted amount and submit the schedule by the 21st of the following month, then issue WHT credit notes to your suppliers.
Documents You Need for WHT Filing
- Completed WHT schedule (payee, nature of payment, amount, rate, WHT)
- Sales report or payment records for the period
- Supplier invoices and contracts
- Your TIN and your suppliers’ TINs
- Proof of previous WHT remittances
Penalties for Late or Missed WHT Remittance
- Failing to deduct or remit WHT can attract penalties and interest on the unremitted amount.
- Late remittance can also affect your suppliers, who cannot claim credit without a valid WHT credit note.
- Outstanding WHT liabilities can delay your Tax Clearance Certificate.
How ComplyDesk Simplifies WHT Filing
Ready-Made WHT Schedule
Download the ComplyDesk schedule template, fill in your payments and upload it securely for review.
Accountant Review
A dedicated chartered accountant checks rates and classification before your filing is submitted.
Monthly Reminders
Automated reminders ahead of each 21st-of-the-month remittance deadline.
Frequently Asked Questions
What is withholding tax in Nigeria?
Withholding tax (WHT) is a tax deducted at source from certain payments, such as contracts, rent and professional fees. The payer remits the deducted amount to the tax authority, and the payee uses it as a credit against their own income tax.
When is WHT due in Nigeria?
WHT deducted in a month is due for remittance by the 21st of the following month.
Who is a withholding agent?
Any company or organisation that makes payments subject to withholding tax is a withholding agent, and must deduct, remit and file regardless of its size or turnover.
What is a WHT schedule?
A WHT schedule lists every payment on which tax was withheld: the payee, the nature of the payment, the amount, the rate applied and the WHT deducted. It accompanies your monthly remittance.
Is withholding tax an extra tax?
No. WHT is an advance payment of the payee’s income tax. The payee offsets the WHT credit note against their final tax liability.
Do I get help from a tax professional when I use ComplyDesk?
Yes. ComplyDesk pairs you with a dedicated chartered accountant who reviews your submission, answers questions and helps resolve compliance issues before anything is filed.
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