Here’s How To File Withholding Tax In Kenya

Do you want to file withholding tax in Kenya? Are you just curious about filing withholding taxes in the country? Here is a everything you need about the entire process:

The How:

1. Visit the Kenya Revenue Authority (KRA)’s iTax website; https://itax.kra.go.ke/KRA-Portal/
2. Next, Select “File my returns”
3. Once there, proceed to the login page.
4. At the login page, enter your company PIN Number as well as your secret Password.
5. Next, go to the “Payments section and select ‘Payment registration’ where you will be provided with an e-Payment registration form where you will fill in your information.
6. Next, complete the “Tax Head”.
7. Select the drop-down menu and choose “Income Tax”.

When filing you Kenya Revenue Authority (KRA( withholding tax remember that the amount withheld must be remitted to the Kenya Revenue Authority (KRA) and filed before the 20th day of the next month.

If you’re an agent and reporting taxes for other parties (income tax), please ensure that:

• ‘(0105) Income Tax – Withholding’ is the “Tax Sub Head.”
• Select between options on returning withholding tax (either Excel form or web form).

Since you are acting on the behalf of other individuals, do NOT select the “Return” option because withholding tax does not apply in that scenario.

For multiple clients, it is recommended to use Excel Form as the Web Forms is much more ideal for one client.

Excel Forms

For Excel Forms you should know:

1. The process involves download,
2. You should also fill the provided excel sheet (obviously).
3. Next, save the Excel sheet on your device.
4. Once done, you will be required to validate and Upload through the iTax upload button.

Web Forms

For Web Forms:

1. Select the transaction from the list.
2. Next, use the table provided to establish the relevant withholding tax rates.
3. After that, type in the withholdee’s Pin Number. Once done, the iTax system will auto-generate their information including names, email as well as addresses.
4. Next, enter the “Gross Amount” you intend to pay for the withholdee.
5. Select ‘Add’ for other transactions that are similar.
6. You can proceed to continue adding until the withholdee list is finished.
7. Next choose the ‘Mode of Payment’ with the ‘Receiving Bank Name’.
8. Once done, select ‘submit’ to finish the entire process of returning withholding tax.

If all the details are accurately completed, the ‘iTax Download Link’ will enable you access your Payment Slip/the Payment Slip for the cleared withholding tax.

An email containing the slip will also be sent to your client (the withholdee) via their personal email address.

You can also download the payment slip and also print a pair. After that be sure to present both slips to the bank and make payments with them.

You can always pay your Kenya Revenue Authority (KRA) via M-Pesa. Simply use the M-pesa Paybill number; 572572.

It is also very important to note that the penalty for late filing in Kenya, is either 5% of the tax payable or twenty thousand (20,000) Kenyan shillings, whichever is higher.