Glossary
What is withholding tax?
Withholding tax is an amount your customer deducts from what they owe you and remits to the tax authority on your behalf, against your own eventual tax bill.
Updated August 7, 2026
It is why an invoice for ₦1,000,000 can be settled with ₦950,000 and still be fully paid. The customer should give you a credit note as evidence.
Keep those notes. They are the only way to claim the deduction later, and reconstructing them a year on is painful.
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