Withholding Tax is one of the most common — and most misunderstood — tax obligations for Nigerian businesses. Every time your company pays a contractor, supplier, landlord, or professional service provider, you're required to deduct WHT at source and remit it to the Nigeria Revenue Service. It's not optional. It's not something you deal with at year-end. It's a monthly obligation, due by the 21st of the following month.
This guide walks you through the entire process of remitting WHT on Taxly — from understanding who needs to remit, to filling out the form, uploading documents, and submitting. If you've ever been confused about WHT rates, what "payee" means in context, or why your contractor's Tax ID matters, this article clears all of that up.
Who needs to remit WHT? Any business that makes payments to contractors, suppliers, landlords, professional service providers, or anyone providing goods and services. If you pay someone for work, goods, or use of their property — you likely need to deduct and remit WHT. The remittance is due monthly, by the 21st of the month following the payment.
What to Prepare Before You Start
WHT remittance requires specific information about both your business and the person or company you paid. Gather these before you open the form:
Business Information
- Your business TIN / Tax ID — your company's tax identification number (auto-filled from your Taxly profile)
- Business name — your registered company name
Payee Information
- Payee name — the full name of the contractor, vendor, or supplier you paid
- Payee TIN / Tax ID — the contractor's or vendor's Tax ID (not yours)
- Payee address — required on WHT schedule under NTA 2025
- Invoice number — the invoice number for the payment made (e.g. INV-2025-001)
Payment Details
- Gross payment amount — the total amount you paid the payee
- WHT type — the category of payment, which determines the rate automatically
Documents to Upload (PDFs)
- Bank statement for the period — covering the month of the payment (required)
- Invoices issued (inflow received) — invoices you issued where payment was received (required)
- Invoices received (payment made) — invoices from suppliers/contractors where you made payment (required)
- Contract documents — for expected inflow/outflow (optional)
Tip: The most common mistake with WHT is confusing your own Tax ID with the payee's Tax ID. The payee TIN field is for the contractor or vendor you paid — not your own business TIN. Your TIN is auto-filled from your profile.
Step 1: Select WHT from the Filing Page
Log into your Taxly dashboard. Click "File Taxes" in the sidebar and select the "WHT" card from the tax type options.
Plan requirement: WHT filing requires the Business plan or higher. If you're on the Individual plan, you'll see a lock banner prompting you to upgrade. Individual plan users can still have WHT deducted on their behalf (as a payee), but remitting WHT as a payer requires the Business plan.
The WHT form has three sections: Withholding Tax Details, Upload Documents, and Declaration & Submission. If your information is ready, you can complete the entire process in under 10 minutes.
Step 2: Withholding Tax Details (Section 1)
This is the most detailed section. It captures the filing period, your business details, the payee information, and the transaction details. Here's every field you'll encounter, as at the time of writing:
| Field | Required? | Notes |
|---|---|---|
| Filing month | Yes | Dropdown: January through December — the month the payment was made |
| Filing year | Yes | The year of the payment (2026, 2025, 2024) |
| Business name | Yes | Your registered company name |
| Your TIN / Tax ID | Yes | Auto-filled from your profile — your business Tax ID |
| Payee name | Yes | Name of the contractor or vendor you paid |
| Payee TIN / Tax ID | Yes | Tax ID of the contractor or vendor being paid — NOT yours |
| Payee address | Yes | Address of the contractor or vendor — required on WHT schedule under NTA 2025 |
| Invoice number | Yes | The invoice number for this specific payment (e.g. INV-2025-001) |
| Withholding type | Yes | Dropdown — determines the WHT rate automatically (see rate table below) |
| Gross payment (₦) | Yes | Total payment made to the payee |
| WHT rate (%) | Yes | Auto-filled based on withholding type — READ ONLY |
| WHT amount (₦) | Yes | Auto-calculated: gross payment × rate — READ ONLY |
The Withholding Type Dropdown
The withholding type determines your WHT rate. When you select a type from the dropdown, the rate field updates automatically. Here are all the options available on Taxly, as at the time of writing:
| Withholding Type | WHT Rate |
|---|---|
| Supply of Goods / Materials | 2% |
| Construction / Building Works | 2% |
| Equipment Hire / Rental | 2% |
| Telecommunications Services | 2% |
| Other Services | 2% |
| Professional / Management / Consultancy | 5% |
| Commission | 5% |
| Rent on Land / Buildings | 10% |
| Dividend | 10% |
| Interest | 10% |
| Royalties | 10% |
| Directors' Fees | 15% |
How to read the rates: The NTA 2025 WHT rates follow a simple pattern. Goods and general services attract 2%. Professional and advisory services attract 5%. Passive income (rent, dividends, interest, royalties) attracts 10%. Directors' fees are the highest at 15%.
Understanding the Auto-Calculated Fields
Two fields in the form are read-only and calculated automatically:
- WHT rate (%) — populates when you select a withholding type. You cannot edit this manually.
- WHT amount (₦) — calculated as: Gross payment × WHT rate. Updates in real-time as you enter the gross payment amount.
Example: You paid a marketing consultant ₦2,000,000 for a brand strategy project. Select "Professional / Management / Consultancy" as the withholding type.
WHT rate auto-fills: 5%
WHT amount auto-calculates: ₦2,000,000 × 5% = ₦100,000
This ₦100,000 is the amount you deducted from the consultant's payment and must remit to NRS.
Example: You paid ₦500,000 rent on your office space for May. Select "Rent on Land / Buildings" as the withholding type.
WHT rate auto-fills: 10%
WHT amount auto-calculates: ₦500,000 × 10% = ₦50,000
You should have deducted ₦50,000 from the landlord's payment and paid them ₦450,000. The ₦50,000 goes to NRS.
Important Notes on the Payee Fields
The WHT form requires the payee's Tax ID and address. This is because WHT is essentially a tax credit for the payee — it reduces what they owe on their own income tax. NRS needs to know exactly who it was deducted from so it can be credited properly.
Always get the payee's TIN before paying. Under NTA 2025, you're required to have the payee's Tax Identification Number before making the payment. If a contractor refuses to provide their TIN, you still must deduct WHT — but remitting without the payee's TIN may cause processing issues. Make TIN collection part of your vendor onboarding process.
Step 3: Upload Documents (Section 2)
After completing the withholding tax details, expand Section 2 to upload your supporting documents. All files must be in PDF format with a maximum size of 10MB each.
Required Documents
- Bank statement for the period under review — your business bank statement covering the month you're filing for. This confirms the payment was actually made and helps Taxly's accountants verify the gross amount.
- Invoices issued for which inflow was received — invoices you sent to customers where payment was received during the period. This provides context for your overall cash flow.
- Invoices received for which payment was made — the contractor or vendor invoices that triggered the WHT deduction. This is the primary evidence of the transaction.
Optional Documents
- Contract documents (expected inflow/outflow) — useful if you have ongoing contracts that will generate multiple WHT obligations over time. Gives the accountants context for future filings.
Tip: The invoice from the payee is your strongest supporting document. It should show the gross amount, and ideally the WHT deduction. If your contractor's invoice says "₦2,000,000 gross, less 5% WHT (₦100,000), net payable ₦1,900,000" — that's perfect documentation.
Step 4: Declaration & Submit (Section 3)
The final section is straightforward. Expand Section 3 and:
- Tick the declaration checkbox — this confirms the WHT information is true and correct, and authorises Taxly to remit the Withholding Tax to NRS on your behalf.
- Click "Submit WHT Remittance" — your filing enters the processing queue.
That's it. The form is submitted and Taxly's accountants take over from here.
What Happens After Submission
The processing flow follows the same pattern as other Taxly filings:
- "Submitted" — your WHT remittance enters the review queue
- "Processing" — accountants verify the payment details, confirm the rate, and cross-reference against your bank statement
- "Filed" — your WHT remittance has been submitted to NRS
- "Completed" — NRS has accepted the remittance
- Document ID delivered — your proof of WHT remittance, sent via email and available on your dashboard
Track the status from "My Filings" on your dashboard. Each WHT remittance appears as a separate filing with its own status and Document ID.
WHT Rate Quick Reference
Here's a condensed reference table you can bookmark for quick lookups when making payments:
| Rate | Payment Types |
|---|---|
| 2% | Supply of goods/materials, construction/building works, equipment hire/rental, telecommunications services, other services |
| 5% | Professional/management/consultancy fees, commission |
| 10% | Rent on land/buildings, dividends, interest, royalties |
| 15% | Directors' fees |
Memory aid: Think of it as a hierarchy — the more "passive" or "advisory" the income, the higher the rate. Physical goods and labour services are at 2%. Expert advice and brokerage are at 5%. Passive income streams (rent, dividends, interest) are at 10%. Directors — who govern corporate decisions — are at 15%.
Monthly WHT Rhythm: Staying Compliant
WHT is a monthly obligation. Every payment you make that attracts WHT must be remitted by the 21st of the following month. Unlike VAT (where you might have one monthly filing), WHT can involve multiple remittances per month — one for each payee you deducted from.
Building a Monthly Process
- Week 1 (1st – 7th): Review all payments made in the previous month. Identify which ones attracted WHT deductions.
- Week 2 (8th – 14th): Collect payee TINs and addresses for any new vendors. Gather invoices and bank statements.
- Week 3 (15th – 18th): File each WHT remittance on Taxly. Submit one filing per payee/transaction.
Don't batch everything to the 20th. If you have multiple WHT remittances, start filing early in the month. Each filing needs review time. Submitting five WHT forms on the 20th leaves no buffer if clarification is needed before the 21st deadline.
Multiple Payees in One Month
If you paid three different contractors in April, you'll need to submit three separate WHT remittances — one for each payee. Each has its own form, its own payee details, and its own Document ID. There's no way to batch multiple payees into a single filing.
What Happens If You Don't Remit WHT
The consequences of not remitting WHT are serious:
- Penalty of 10% of the unremitted tax per annum from the date it should have been remitted
- Interest charges at the prevailing Central Bank rate
- The payee doesn't get their tax credit — they may come after you because their tax liability increases
- Compliance issues when applying for Tax Clearance Certificate
- Potential criminal liability for repeated non-remittance under NTA 2025
WHT is money you've already deducted from someone else's payment. Not remitting it to NRS is effectively holding onto tax that belongs to the government — and the payee is counting on that credit against their own tax bill.
Common Mistakes to Avoid
- Wrong payee TIN — double-check the contractor's Tax ID. If it's wrong, the WHT credit goes to the wrong person and your contractor won't get their tax credit.
- Confusing your TIN with the payee's — "Your TIN / Tax ID" is your business TIN (auto-filled). "Payee TIN / Tax ID" is the contractor's or vendor's TIN.
- Selecting the wrong withholding type — a consultant billed under "Supply of Goods" would get a 2% rate instead of the correct 5%. Choose the type that matches the actual service provided.
- Filing under the wrong month — the filing month should be the month the payment was made, not the month you're submitting the form.
- Not deducting WHT at all — some businesses pay the full invoice amount without deducting WHT, then struggle to fund the remittance separately. Always deduct at the point of payment.
- Missing the payee address — under NTA 2025, the payee's address is required on the WHT schedule. Get it upfront along with their TIN.
Frequently Asked Questions
Do I need to remit WHT on every payment I make?
Not every payment attracts WHT. Payments to employees (covered by PAYE), payments below ₦10,000, and payments to government agencies are generally exempt. But payments to contractors, suppliers, landlords, and professional service providers almost always require WHT deduction.
What if my contractor doesn't have a Tax ID?
Under NTA 2025, everyone receiving business payments should have a Tax ID (their NIN serves as their Tax ID). If the contractor doesn't provide one, you still must deduct WHT — but enter what information you have. Encourage them to register.
Can I remit WHT for multiple months at once if I'm behind?
Yes, but each month requires a separate filing. If you're behind on three months of WHT for a single payee, submit three separate forms — one per month. Late remittances will attract penalties and interest, but filing late is always better than not filing at all.
What if the payment covers multiple service types?
If a single invoice covers both goods supply (2%) and professional services (5%), you should ideally split them into separate line items. On Taxly, you'd submit two separate WHT filings — one for the goods portion at 2% and another for the services portion at 5%. Ask your vendor to itemise their invoices.
Is WHT a final tax or a credit?
For most transactions between Nigerian companies, WHT is a credit — meaning the payee can offset the WHT deducted against their annual income tax liability. It's not an additional tax; it's a prepayment mechanism. The payee reports the WHT credit when filing their own annual returns.
Never miss a WHT deadline again
Enter the payee details, select the transaction type, and let Taxly handle the NRS submission. Your accountant verifies everything before it's filed.
Remit WHT on Taxly →