Withholding Taxes-Kenya
Residential Status: Res=Resident, NRes=Non-Resident
The withholding tax rates shall be
| Description | Notes | Res | NRes | ITA |
|---|---|---|---|---|
| Dividends | 5% on EAC citizens | 5% | 10% | a |
| Interest/Discount: | : | . | . | b |
| --Housing Bonds | Qualifying interest is limited to Ksh300K pa | 10% | 15% | b() |
| --Gov't Bearer bonds | Maturity of 10yrs=10%, Non-Govt >2yrs=25%, Listed for projects >3yrs=Exempt. | 15% | 15% | b(ii) |
| --Deemed Interest | Free interest loans equal to Av.91day Treasury bill rate | - | 15% | b() |
| --Other sources | WHT from Banks, Building societies, CBK. is Final. On payment by Special Economic Zone Ent.=5% | 15% | 15% | b() |
| Commission: | : | . | . | Na |
| --Insurance Brokers | 5% | 20% | Na | |
| Item | Note | % | % | Na |
| management or professional fees or training fee | Note | % | 25% | Na |
| Item | Note | % | % | Na |
- Withholding is a priority of all taxes. TPA sec 34(3)
- For all taxes, the aggregate/accrued interest payable shall not exceed the principal tax liability. TPA s.35(3), s.38(8)
- A person who fails to withhold/remit WHVAT by 20th day is liable to penalty 10% of the amount. s.42(4D)
- The Commissioner shall not assess any person for any year of income on that portion of income which has been subject to withholding tax which is also a final tax. s.74A ITA
REF: S.10, S.35, 3rd Sch Par 3, 3rd Sch Par 5 of ITA
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