What is Withholding Tax (WHT)?
Withholding Tax (WHT) is a government requirement in many countries where a portion of a contractor’s payment must be withheld by the payer and sent directly to the tax authority.
If WHT applies, Deel allows clients to add it during contract creation. Once applied, WHT will automatically be reflected in invoices and payments.
Note
Deel does not provide legal advice on WHT.
How WHT is Applied
- During contract creation: If applicable, clients will see an option to add WHT.
- Calculation order: VAT (if applicable) is added first, and then WHT is applied on top of the total
- Invoices: A separate line will display the WHT percentage and amount for each payment cycle.
Example:
- Subtotal: $5,000
- VAT (3%): +$120
- WHT (15%): -$768
- Final Total: $4,352
Clients can add or remove the WHT from the current cycle by going to the contractor profile and clicking the option Payments, expenses & work submission.
Additionally, clients can add WHT to multiple contracts at once. For more information, see the Mass Uploading Line Items for Contractors article.
Managing WHT on Invoices
- View details: You can see the WHT rate and amount applied for the current cycle.
- Remove for one cycle: If needed, you can remove WHT from a single invoice. A note will confirm it is removed only for this cycle; it will reappear in future cycles
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Permanently remove or change WHT: WHT cannot be edited in the platform. To update or fully remove it from the contract, please contact Deel Support.
Key Points to Remember
- WHT can only be added during contract creation.
- Once added, it applies automatically to all relevant invoices.
- Removal from the platform only applies to the current cycle; future cycles will still include WHT.
- To make permanent changes to WHT, clients must reach out to Deel Support.