Withholding Taxes on Royalties

PUBLIC NOTICES 06/11/2019

Kenya Revenue Authority wishes to bring to the notice of the public that they ought to withhold tax when making payment for royalties. The Income Tax Act Cap 470 defines royalties as follows:

“Royalty” means a payment made as a consideration for the use of or the right to use:

  1. the copyright of a literary, artistic or scientific work; or
  2. a cinematograph film, including film or tape for radio or television broadcasting; or
  3. a patent, trade mark, design or model, plan, formula or process; or
  4. any industrial, commercial or scientific equipment,

or for information concerning industrial, commercial or scientific equipment or experience, and gains derived from the sale or exchange of any right or property giving rise to that royalty;

The withholding tax rate is 5% for residents and 20% for non-residents.

KRA will be carrying out sensitisation on the same at Times Tower, 5th Floor on main hall on 22nd November 2019 at 9.00am. The dates of training for regions outside Nairobi will be confirmed in due course.

For clarification please call the Contact Centre on Tel: 020 4 999 999; 0711 099 999 or Email: callcentre@kra.go.ke

 

Commissioner for Domestic Taxes