Withholding Tax (WHT) Rates & iTax Certificate Guide
Withholding Tax (WHT) is a form of advance income tax deducted at source by a paying agent when making payments to services, consultancies, or rentals. The deducted tax is immediately remitted directly to KRA.
Key WHT Rates & Certificate Generation:
- Professional Services: Charged at 5% for resident individuals and 20% for non-residents on amounts exceeding KES 24,000 monthly.
- Management & Training Fees: Charged at 5% WHT for resident entities.
- Generating WHT Certificates: The paying entity must issue a Withholding Tax Certificate via iTax. The payee can then use this certificate as a tax credit to reduce their annual income tax liability when filing returns.