Withholding tax rates are usually 10% or 5% depending on the type of transaction and collecting authority for the tax (which can be a Federal Inland Revenue or the State Inland Revenue).
A withholding tax is basically an advance and indirect source of taxation deducted at source from the invoices of the tax payer. It’s main purpose is to capture as much tax payers that may have evaded tax into the tax net.
A WHT Credit note will include the following
1. Credit Number
2. The name of the tax payer (purchaser of your services or goods) who deducted the tax and remitted on your behalf
3. The name of the beneficiary whose invoice was deducted (which is you I suppose)
4. The Date of the transaction including the nature of the transaction