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Withholding Tax (WHT) is not an extra cost; it is an advance payment of your tax. In 2026, the Nigeria Revenue Service (NRS) has fully automated the credit note process. Gone are the days of manual ‘K-Cards’. Today, your tax credits are digital assets that live on the TaxPro Max portal.
How to Generate a Credit Note
As a ‘Withholding Agent’ (the person paying the vendor), you must:
- Log in to TaxPro Max.
- Upload a schedule of your suppliers (TIN, amount, and nature of transaction).
- Remit the tax to the NRS bank account by the 21st of the following month.
- The system then automatically generates a Digital Credit Note for your vendor.
How to Use Credits to Pay Your Tax
When you file your annual Company Income Tax, your dashboard will show a ‘Credit Balance’. You can apply this balance to reduce your final tax bill. This is a vital part of your Tax Planning Strategy. If your credits are not appearing, you may need to visit an NRS office for ‘Validation’ of old manual notes. For more on compliance, see the Compliance Checklist. Visit KPMG Nigeria for advanced reconciliation tips.”