WHT is a tax deducted at the source when a person makes a payment to another for specific services. The person making the payment is known as the "withholding agent" and is responsible for deducting the tax and remitting it to KRA.

KRA applies different WHT rates depending on whether the service provider is a resident of Kenya or a non-resident. Non-resident rates are typically higher. Our calculator automatically shows the correct services and rates when you select a residency status.

Common services include professional, management, or training fees; royalties; dividends; interest; commissions; and rental income paid by an appointed agent.

The WHT rate for professional and management fees paid to a resident person is 5%. For non-residents, the rate is 20%.

Withholding tax on rental income only applies when the rent is paid to a resident person by a KRA-appointed rental income withholding agent. The rate is 7.5% on gross rent for residential property and 10% for commercial property.

Withholding Tax must be paid to KRA on or before the 20th day of the month following the month in which the tax was deducted.

On the iTax portal, go to the "Payments" menu and select "Payment Registration." You will need to fill in the details of the payee, the gross amount, and the tax to be withheld to generate a payment slip (PRN).

The penalty for failing to withhold tax is 10% of the tax amount. The penalty for late payment is 5% of the tax due, plus a late payment interest of 1% per month on the unpaid tax.

Yes. The Withholding Tax certificate issued by the payer acts as a tax credit for the payee. They can use this credit to offset their final income tax liability when they file their annual tax return.

Yes, certain payments are exempt. These include payments for goods, payments to tax-exempt entities, and payments that are subject to other final taxes, such as Monthly Rental Income (MRI) paid by a regular individual.