What are the Withholding Tax rates?

Description

Resident

Non ? Resident

Artists and entertainers

-

-

Management fees

5%

20%

Professional fees

5%

20%

Training fess (inclusive of incidental costs)

5%

20%

Winnings from betting and gaming (w.e.f. 1 Jan 2014)

20%

20%

Royalties

5%

20%

Dividends (nil for resident shareholders with>12.5%)

5%

10%

Equipment (movable) Leasing

N/A

5%

Interest (Bank)

15%

15%

Interest (Housing Bond ? HBI)

10%

15%

Interest on two ? year government bearer bonds

15%

15%

Other bearer bonds interest

25%

25%

Rent ? buildings (immovable)

12%

30%

Rent ? others (except aircraft)

N/A

15%

Pensions/provident schemes (withdrawal)

10 ? 30%

5%

Insurance Commissions

10%

20%

Consultancy and agency(from 1 July 2003)

5%

20%

Contractual and agency (from 1 July 2003)

3%

20%

Telecommunication services/Message transmission

-

5%

Natural Resource Income (w.e.f. 01/01/2015)

5%

20%

What is exempt from Withholding Tax?

  • Dividends received by a company resident in Kenya from a local subsidiary or associated company in which it controls (directly or indirectly) 12.5% or more of the voting power.
  • Marketing commissions and residue audit fees paid to foreign agents in respect of export of flowers, fruits and vegetables.
  • Interest payments to banks and insurance companies.
  • Payments made to tax exempt bodies.
  • Local management and professional fees whose aggregate is below Ksh 24,000 in a month.
  • Air travel commissions paid by local air operators to overseas agents.