FAQs
Why would my application for a TCC be unsuccessful?
If you have not met the conditions listed in No. 7 above.
What support is available for taxpayers who need assistance?
KRA has established help desks at all Tax Service Offices countrywide and the Contact Centre reachable via 0711 099 999 or callcentre@kra.go.ke.
What is Withholding tax (WHT)?
What is Withholding Tax (WHT)?
WHT is a tax deducted at source of certain incomes, where the person making the payment (withholder) deducts tax at the applicable rate, remits the tax to Kenya Revenue Authority (KRA) on behalf of the recipient of the payment(withholdee) within five (5) working days and pays the withholdee the balance, net of the tax deducted.
Upon remittance of the tax to KRA, a WHT certificate is issued to the withholdee as evidence of tax deducted and remitted to KRA by the withholder.
Why Withholding Tax?
- Government receives revenue on a timely basis through the year
- Taxpayers would avoid huge tax burdens at the end of the year
- Enhances visibility of taxpayers and enhances tax compliance
- Ensures tax is collected from income earned by non-residents in the country
What payments are subject to withholding tax?
Payments in respect of interest, dividends, royalties, pension, winnings from gambling, management and professional fees, training fees, contractual fees, payments for digital content monetization and payments for sales promotion, marketing and advertising services, insurance commission, rent for use or immovable property are subject to WHT
What is the obligation of the Withholder?
A Person making the above payments is required to withhold tax at applicable rate and remit it to the Commissioner within five (5) working days of the date of payment.
Is withholding tax a final tax?
In the case of taxes withheld from non-resident person with no permanent establishment in Kenya, the tax withheld is a final tax and no further declarations required from such persons. For resident persons, WHT is final in the case of qualifying dividends and qualifying interest. For the other incomes listed under 2 above, the withholdee is required to declare the income in their income tax return, claim a credit of the tax withheld and pay the balance of tax.
What is the Withholdee’s Responsibility?
Where the withholding tax is not a final tax, the withholdee is required to declare the income in their tax return and pay the balance of tax.
What are the withholding tax rates?
| Payment Type | Resident | Non-Resident | Final Tax Treatment |
|---|---|---|---|
| Dividends – Qualifying dividend | 10% | 15% | Advance / Final for individuals |
| Qualifying interest / Interest | 15% | 15% | Final for individuals (from financial institutions listed in the Income Tax Act) |
| Royalties | 5% | 20% | Advance (resident) / Final (non-resident) |
| Management, Professional, Training Fees | 5% | 20% | Advance (resident) / Final (non-resident) |
| Contractual Payments (construction, supplies) | 3% | 20% | Advance (resident) / Final (non-resident) |
| Commission | 5% / 10% | 20% | Advance (resident) / Final (non-resident) |
| Commercial Rent | 10% | 30% | Advance (resident) / Final (non-resident) |
| Residential Rent (Monthly Rental Income regime) | 7.5% | 30% | Advance (resident) / Final (non-resident) |
| Appearance / Performance Fees | N/A | 20% | Advance (resident) / Final (non-resident) |
| Winnings | 5% | 5% | Advance (resident) / Final (non-resident) |
| Supply of goods to a public entity | 0.5% | 5% | Advance (resident) / Final (non-resident) |
KRA's Commitment
KRA is committed to assisting taxpayers meet these obligations. The established initiatives in taxpayer education, alongside technological advancements facilitating online declarations and payments through iTax, demonstrate a proactive approach to simplifying tax compliance processes.
What is the eCUSTOMS app?
The eCUSTOMS app is a mobile application developed by the Kenya Revenue Authority (KRA) Customs & Border Control (C&BC) to simplify and enhance customs declarations for travellers, cross-border traders, and transporters.
What are the main features of the eCUSTOMS app?
The app offers several key features to facilitate customs declaration:
- Passenger Declarations: Declare items, pay duties via mobile money or card, and track your declaration status in real time for a smoother clearance.
- Border Truck Management: Digitally submit truck details, pay tolls, and manage truck rotations to streamline border crossings.
- Simplified Trade Regime: Declare goods valued up to $2,000, upload necessary documents, pay duties, and benefit from accelerated border clearance with automated tax calculations.
- Consolidated Cargo Imports: Module is under development
Who can use the eCUSTOMS app?
The app is intended for:
- Travellers/Passengers who need to declare personal items.
- Traders involved in importing and exporting goods.
- Transporters managing trucks and cargo across borders.
How do I pay for duties and fees using the app?
The app supports payments through mobile money and credit/debit cards.
Can I track the status of my declarations and shipments?
Yes, the app provides real-time tracking for the status of your declarations and shipments.
I purchased my goods using foreign currency, will I declare my goods in the same currency
You can declare in either the foreign currency or Kenyan currency, however the mobile app will convert the declaration to Kenyan currency.
How do I sign in
You can sign in with your;
- Email address
- Mobile number
- With an iTax account using your KRA PIN/ ID Number/Passport Number
My ID number populates an email and mobile number that I no longer have access to, what do I need to do?
Reach out to the iTax Team for facilitation.
How do I reset my password?
- Go to the sign-in with Account
- Click forgot password
- In put PIN/Passport Number or National Identification
