Withholding Tax is a method whereby the payer of certain incomes such as consultancy, commission, interest etc., is responsible for deducting tax at source from payments made and remitting the deducted tax to KRA.
Withholding tax is not a final tax. One is required to declare the income and the withholding tax certificates upon filing individual or corporate tax returns and pay any tax due.
· Withholding Tax is deducted and remitted on or before the 20th of the following month.
· Penalty for late filing of Withholding Tax is either 5% of the tax payable or twenty thousand shillings, whichever is higher.