Withholding Tax

Easy Steps to File Your Withholding Tax in 2024

Withholding tax is a type of tax that is deducted from certain incomes. Some of the incomes include:

  • Professional fees
  • Winnings from gambling
  • Consultancy fees
  • Royalties
  • Interest
  • Pensions
  • Digital content monetization, etc.

The tax should be remitted to the commissioner of Domestic Taxes in not more than 5 days. The tax rates range from 3% to 25% depending on the type of income (bearer bonds and winnings from betting have the highest tax rate)

If you have been having problems filing your withholding tax, this article is for you. We have included step by step process of how you can file the returns without much hassle.

How to file Withholding tax

Withholding tax in Kenya is as easy as the other types of tax returns. Filling your withholding returns takes a different approach which seems to confuse the majority of people.

Before you start the filling process, here is what you need:

  • KRA Pin
  • Password
  • Stable internet
  • Withholding tax certificates

If you have the above documents, here is how you file withholding tax returns

Open a new Google tab

  1. Open the KRA portal
  2. Enter your KRA pin
  3. Click Continue
  4. Enter your password
  5. Solve the arithmetic equation
  6. Click “Log in”
  7. Once the dashboard opens, hover your mouse over the “Return tab”
  8. Click on “file return”
  9. Choose income tax resident
  10. Proceed to download the Excel form
  11. Once the form opens click on “Enable content”
  12. On the basic info tab A, enter your KRA pin, choose the type of return, enter the dates of your return
  13. On option 7, you’ll be asked if you have any other source of income apart from employment. Choose Yes
  14. Click next to move to Tab B
  15. Tab B is the profit and loss account
  16. On sr. No 1.2, enter the total amount indicated on all your Withholding Tax certificates. If one certificate has Ksh 50,000 as the gross amount of transaction and you have 10 certificates with the same amount for 2023, your total amount should be Ksh 500,000.
  17. Proceed on Tab C, the balance sheet
  18. On Sr. No 1.5 “Other Assets” enter 1.00. Move to Sr. No 4.1.5 and enter 0.00. on Sr No 7.1.2, enter 1.00 again. (if you have other expenses eg 30,000 fill them correctly on the tabs)
  19. Click next
  20. Fill out the employer tabs if applicable
  21. declare payment registration number, date of deposit, and amount of tax paid on tab N (if applicable)
  22. Move to the tax computation on tab T and enter your withholding tax amount (Sum of withheld tax on all the Withholding tax certificates)
  23. Enter personal relief if it’s applicable
  24. Click on validate
  25. The validated form will be uploaded to your computer’s documents
  26. Upload it on the KRA portal
  27. Tick the box to agree to the terms and conditions
  28. Click submit (if there are any errors on the data captured, the system will tell you what you need to correct)
  29. Download your receipt
Withholding Tax

Conclusion

Filling your Withholding tax returns might be hectic. If you have any problems filling, you can consult a certified tax returns consultant or an accountant to file for you.

The Tax returns deadline is slowly approaching. To avoid hefty penalties from KRA, file your Withholding tax returns today.

Frequently Asked Questions (FAQs)

What is withholding tax in Kenya?

Withholding tax is deducted from varying incomes such as consultancy fees, training fees, audit fees, and many more.

Is withholding tax the same as PAYE?

No, withholding tax and PAYE (Pay As You Earn) are two different types of tax

When should withholding tax be paid?

It should be paid within 5 days after the deduction is made or on every 20th of the month. Failure to which a 20% penalty of the total amount is charged by KRA.

Is PAYE deducted from basic salary?

Yes, employers deduct PAYE from the salary and remit the amount to KRA before the 9th of every month.

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