You submit the withholding tax returns via the itax portal. To submit, you need to create an Excel file with the gross amount, the amount withheld, and the KRA PINs for the people you have retained. After submission, you can generate a payment slip to pay the amount. The withholding tax rates are as follows; ( Source KRA) Make sure that your tax complaint, if you have difficulty completing or paying source deductions, you can ask us for help. Withholding tax is not a final tax. To produce your income with withholding tax, you must have prepared a profit and loss account showing your income and expenses that were fully incurred to produce that income. You should also have a balance sheet that shows your assets, liabilities and capital. The payment of the withholding tax is made online via iTax, create a payment slip and present it to one of the designated KRA banks to pay the tax due. You can download our Withholding Tax Submission Guide, which includes a CSV file template that allows you to import details into the EXCEL KRA Tax Fill form. In the Excel KRA file for personal income tax returns, you must first enable the field for income from sources other than business income. Then you can use your income statement and balance sheet created in the KRA Excel spreadsheet. On the Final Tax Calculation tab, you can report the amounts withheld as withholding tax credits. Withholding income and not paying tax to the tax authorities is a criminal offence.
If, as a beneficiary, you receive income subject to withholding tax, you must verify the accuracy of the details with the source certificate and confirm that you have not received a net amount and that what has been deducted has not been paid to KRA. If you have tax credits at source, not only can you file zero tax returns or work income, but the KRA itax portal will give you an error and ask you to report the tax credits withheld. The withholding tax is not final, which means that earned income must be reported at the end of the year no later than June 3 among other income. If you receive income subject to withholding tax, you should receive a withholding certificate that includes details of the amounts and details of the holder. (see example with retention certificate above) In the budget statement that the Minister of Finance submits to Parliament, more services will be subject to the withholding tax. For deductions if you do not file your tax returns by June 30 of each year, the penalties are either; That is, if you make payments for the above services, you should keep this in mind when it comes into effect so that the payment you make is less withholding tax. To make payments for source deductions, generate a payment slip from the KRA itax portal and select Source deduction as a subsection. You can also reprint retention certificates in your KRA itax portal. Both the holder (payer) and the retainer (recipient) are required to submit their tax returns online via the KAR itax system. Once you have withheld the income subject to withholding tax, you must submit and transfer the amount withheld to KRA no later than the 20th of the previous month. The whT rates applicable to payments to non-residents of the oil and gas sector are listed in the following table: Penalties for late reporting of tax withheld from the holder are either SH20,000 or 5% of the tax payable, whichever is greater. Date: Deduction and transfer no later than the 20th of the following month.
Penalty: Either 5% of the tax payable, or twenty thousand shillings, whichever is greater. This is a method by which the payer of certain income is responsible for deducting the withholding tax from payments made and paying the tax deducted to the KRA. One example is that if marketing companies pay commissions to their marketers, the company will withhold some of the commissions and pay as a tax to the Kenya Revenue Authority on behalf of the marketers. You can pay the amount at any KRA partner bank. Alternatively, you can 572572 payment with Mpesa mobile money for amounts less than sh 70,000 with the payment invoice number, the account number will be the unique reference number of the payment slip. The withholding tax is deducted at a percentage that depends on the income paid, both to residents and non-residents. The account number is the payment registration number indicated in the upper right corner of the generated payment slip. .
