Nigeria Withholding Tax Schedule Worksheet
When a Nigerian company pays a supplier, landlord or consultant it often has to deduct withholding tax and remit it to the tax authority. This worksheet gives the accounts payable team a single schedule of what was deducted, from whom, and whether the supplier received a credit note.
| Invoice date | Payee | Payee TIN | Nature of payment | Gross amount (excl. VAT) | WHT rate (%) (%) | WHT deducted | Net paid before VAT | Credit note received | |
|---|---|---|---|---|---|---|---|---|---|
NGN 225,000 | NGN 4,275,000 | ||||||||
NGN 180,000 | NGN 1,620,000 | ||||||||
NGN 47,500 | NGN 902,500 | ||||||||
NGN 110,000 | NGN 2,090,000 | ||||||||
NGN 120,000 | NGN 1,080,000 |
The rates shown are examples only. Confirm the rate for each payment type and payee category against the current Nigerian withholding tax regulations before remitting. WHT is typically computed on the value before VAT.
Reconcile WHT to your ledger
Optional: we can look at how withholding is posted in your ERP.
Optional. The tool and every export work without this. No spam.
How to use the worksheet
Add one row per payment. Enter the invoice date, payee, TIN, nature of payment, the gross amount before VAT and the rate that applies. The sheet computes the tax deducted and the net amount. Mark whether a WHT credit note was issued, and use the totals row for the remittance. Export to Excel for your month end pack or to attach to the remittance request.
- One row per invoice or payment
- Use the payee TIN so credit notes can be traced
- Review rows with credit note set to No before month end
- Export a fresh copy each remittance period
Method
Withholding tax is deducted at source as a percentage of the payment value, with rates depending on the type of transaction and the status of the payee. The amount deducted is a credit against the payee's income tax and is remitted by the payer within the statutory deadline. The worksheet applies the rate you enter to the gross amount, so keep your rate list in a separate reference and update it when rules change.
Reading the result
The effective rate shows total WHT as a share of gross payments. In the sample data, WHT totals NGN 765,000 on gross payments of NGN 10,650,000, an effective rate of about 7.2 percent, driven by the mix of rent and contract payments. A sharp change in this rate month to month usually means rows are mis-categorised.
Common mistakes
Teams apply WHT to the VAT inclusive amount, use the wrong rate for individuals versus companies, forget to issue credit notes, or remit late. In an ERP, set up withholding tax codes on vendors so deduction happens at payment, and use this worksheet to reconcile the schedule to the general ledger.
Frequently Asked Questions
Are the rates in the sample correct for my case?
They are illustrative. Rates differ by transaction type and payee, and regulations change. Check the current schedule before you deduct, and edit the rate column accordingly.
Is VAT included in the gross amount?
The column is labelled excluding VAT because withholding tax is generally computed on the value before VAT. Confirm the treatment for your transaction with your tax adviser.
Can I add more rows?
Yes. Add and delete rows freely. Totals and the effective rate update automatically, and the whole table exports to Excel or CSV.
Does it file the return?
No. It produces a schedule you can use to prepare the remittance and keep for audit. Filing is done through the tax authority channels.
If you want WHT deductions posted and reconciled directly from vendor payments in your ERP, Netray can review the configuration with you.
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