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How to Manage Withholding Tax (WHT) Settings?

How to Manage Withholding Tax (WHT) Settings?

Learn how to configure and automate Withholding Tax (WHT) settings for your KSA-based entity.

Souha E. avatar
Written by Souha E.
Updated yesterday

As a client with a legal entity in Saudi Arabia, you can manage WHT in different modes based on your compliance requirements. You can either:

  • No Withholding Tax (Default): WHT is neither tracked nor deducted from invoices.

  • Track Only: WHT is not deducted from payments, but for every payment transaction, a WHT statement (PDF & Excel) is generated with relevant amounts per invoice.

  • Track & Deduct: The WHT amount is automatically deducted from all invoices.

By default, WHT is disabled. You can enable it per contract or apply it across all contracts at once.


How to Enable WHT per Contract

  1. Open the relevant Contract and go to the Settings tab.

  2. Click Manage under the Withholding Tax section.

  3. Choose the WHT Mode you want to apply.

  4. Set the applicable Tax Rate.

  5. Optionally, enable Apply to expense payments if you’d like WHT applied to expense reimbursements.


How to Enable WHT for All Contracts

  1. Go to Company Settings > Contract Settings tab.

  2. Click Manage under the Withholding Tax section.

  3. Select the desired WHT Mode.

  4. Set the Tax Rate.

  5. Optionally, enable Apply to expense payments.

Note:

  • These settings apply to all pending and future payments under the selected contracts.

  • Changes made at the company level will apply to all Fixed, Pay As You Go, and Milestone contracts, but can still be overridden individually at the contract level.


How to Download a WHT Statement

  1. Go to the Transactions page.

  2. Click the three-dot menu next to the relevant payment.

  3. Select Download WHT Statement.

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