How to File your Withholding Tax Returns

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File your Withholding Tax Returns
File your Withholding Tax Returns

This is a method whereby the payer of certain incomes is responsible for deducting tax at source from payments made and remitting the deducted tax to KRA.

The percentage deducted varies between incomes and is dependent on whether you are a resident or non- resident. 

The relevant rates are as follows:

Description Resident Non – Resident
Artists and entertainers
Management fees 5% 20%
Professional fees 5% 20%
Training fess (inclusive of incidental costs) 5% 20%
Winnings from betting and gaming (w.e.f. 1 Jan 2014) 20% 20%
Royalties 5% 20%
Dividends (nil for resident shareholders with>12.5%) 5% 10%
Equipment (movable) Leasing N/A 5%
Interest (Bank) 15% 15%
Interest (Housing Bond – HBI) 10% 15%
Interest on two – year government bearer bonds 15% 15%
Other bearer bonds interest 25% 25%
Rent – buildings (immovable) 12% 30%
Rent – others (except aircraft) N/A 15%
Pensions/provident schemes (withdrawal) 10 – 30% 5%
Insurance Commissions 10% 20%
Consultancy and agency(from 1 July 2003) 5% 20%
Contractual and agency (from 1 July 2003) 3% 20%
Telecommunication services/Message transmission 5%
Natural Resource Income (w.e.f. 01/01/2015) 5% 20%

 

How to File your Withholding Tax Returns

  1. Any amount withheld, should be remitted to KRA on or before the 20th day of the following month.
  2. Payment of withholding tax is done online via iTax, generate a payment slip and present it at any of the appointed KRA banks to pay the tax due.
  3. You can also pay via Mpesa.
  4. Use the KRA Pay bill Number 572572.
  5. The Account Number is the Payment Registration number quoted at the top right corner of the generated payment slip.
  6. When you successfully remit the deducted amount to KRA, we shall send a Withholding Certificate to the email you registered with on iTax.
  7. Withholding tax is not a final tax. One is required to declare the income and the withholding tax certificates upon filing individual tax returns and pay any tax due,

What is the penalty for late filing?

Date: Deducted and remitted on or before the 20th of the following month. 
Penalty: Either 5% of the tax payable or twenty thousand shillings, whichever is higher.

 

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