The account number is the payment registration number quoted at the top right corner of the generated payment slip. Corporate tax 2020 kenya global practice guides chambers. The period for carrying forward tax losses now extended to ten years from the current 5 years. The kenya revenue authority has released guidelines for the collection of. Payment of withholding tax is done online via itax, generate a payment slip and present it at any of the appointed kra.
Whichever is higher between, 5% of the tax due or kshs. Betting, gaming and lottery businesses are required to withold as tax and remit to kra 20 % of the winnings being paid out to winners. The regulations are governed by independent legislators that govern the taxation system, the main legislator, the kenya revenue authority kra has different sections that deal with the above taxes. The tax rate is 10 % of the gross rental income no expenses are deductible. Relief because of doubt or difficulty in recovery of tax. Certain payments for which withholding tax wht must be deducted at the prescribed rate and remitted to the kra. Export processing zone enterprises are exempt from corporate tax for the first 10 years and subsequently enjoy a reduced tax rate of 25 % for the next 10 years. Landlords will from january pay a new withholding tax on rental income, kenya revenue authority has said. The kra currently chairs the africa tax administrators forum transfer. Kra wins case to collect withholding tax amounting ksh.
When you successfully remit the deducted amount to kra, we shall send a withholding certificate to the email you registered with on itax. Income tax department administers various direct taxes, which have different rates. Kenya revenue authority kratax administration aspect and has. The tax procedures act, 2015 also penalises any tax avoidance schemes by a taxpayer. The rate of the investment deduction has been increased from 40% to 100 %. Excise duty on betting is chargeable at the rate of 20 % of the amount wagered or staked, commencing 7th november, 2019. The current corporate tax rate applicable in kenya is 30% in the case of resident corporations i. Individual income tax returns should be filed on or before 30th june of the following year. Kenyas taxation system covers income tax, valueadded tax, customs and excise duty. Review and modernization of the income tax act, expected to be complete by end of september 2015. Kenya corporate withholding taxes worldwide tax summaries. Deletion of the 10% penalty that was capped at kes 1 million effective 9 june 2016 wtax in respect of commercial property rent paid to resident persons clarified rate to be 10 % and not 12 % as per the finance act 2015. The tonnage of ships qualifying for investment deduction has been reduced from 495 tons to 125 tons.
In presenting the budget policy statement, cabinet secretary for national treasury henry rotich was cautious about raising tax rates, saying that kenya revenue authority kra needs to do a lot. Profits after tax are subject to 5 % or 10 % withholding tax, for residents and nonresidents respectively, when distributed as dividend. View the tax rates, credit factors, credit rates and rita municipal codes for all rita member municipalities. Kenya individual income tax rate table and kenya corporate income tax tds vat table provides a view of individual income tax rates and.
Dividends received by a company resident in kenya from a local subsidiary or associated company in which it controls directly or indirectly 12. Kenya tax rates for 20162017, 20152016, 20142015 kenya. Kra releases guidelines on withholding tax wednesday, november 19, 2014 19. Kenya revenue authority kra has won a case to collect withholding tax amounting to ksh.