Businesses Making Payments
Any business making payments subject to withholding tax must deduct and remit the tax to KRA.
Withholding tax
Professional withholding tax returns filing.
Ensure accurate withholding tax calculations and timely filing for dividends, interest, rent, professional fees and more.
Overview
What is Withholding Tax?
Withholding tax is tax deducted at source from various payments including dividends, interest, rent, professional fees, management fees and other specified payments. It must be remitted to KRA by the 20th of the following month.
Who needs this service
Is Withholding Tax filing right for you?
Companies Paying Dividends
Companies distributing dividends must withhold tax on dividend payments to shareholders.
Businesses with Professional Services
If you pay professional fees, management fees or consultancy fees, withholding tax applies.
Landlords and Tenants
Rental income payments are subject to withholding tax at a rate of 10%.
What's included
Everything you need for withholding tax compliance.
Accurate Tax Calculations
We calculate withholding tax accurately based on applicable rates for each payment type.
Timely Monthly Filing
We ensure your withholding tax returns are filed by the 20th of every month.
Tax Compliance Certificates
We help you obtain withholding tax compliance certificates for your business.
Documentation Support
We guide you on proper documentation and record keeping for withholding tax.
Past Returns Correction
We help review and correct past withholding tax returns and negotiate penalty waivers.
Ongoing Support
We provide continuous support throughout the year for all your withholding tax needs.
Common withholding tax rates
Understanding withholding tax rates in Kenya.
Dividends
Withholding tax is applied at 5% or 10% depending on the recipient.
Interest
Interest payments to individuals and companies are subject to withholding tax.
Rental Income
Rental payments are subject to withholding tax at a rate of 10%.
Professional & Management Fees
Professional fees, management fees and consultancy fees are subject to withholding tax.
Contractual Payments
Payments to contractors and suppliers are subject to withholding tax.
FAQ
Common questions about withholding tax.
When is withholding tax due?
Withholding tax must be filed and remitted to KRA by the 20th of the following month after the deduction.
Who should deduct withholding tax?
Any person or business making payments subject to withholding tax must deduct the tax and remit it to KRA.
What happens if I don't deduct withholding tax?
Failure to deduct and remit withholding tax can result in penalties, interest charges and legal consequences.
What is a withholding tax certificate?
A withholding tax certificate is issued to the payee confirming that tax has been deducted and remitted to KRA.
Can you help with withholding tax compliance?
Yes, we provide comprehensive support for withholding tax calculations, filing, and compliance with KRA requirements.
Ready to file your withholding tax
Let us handle your withholding tax compliance.
Contact us today for professional withholding tax services and peace of mind knowing your taxes are in expert hands.