Withholding Tax Management
Proactive withholding tax management for better compliance and cash flow
Withholding tax requires you to deduct tax at source on specified payments (professional fees, management fees, commissions, royalties, interest, dividends, rent and payments to non-residents) and remit it within strict timelines. Getting it wrong costs penalties, interest, disallowed expenses and strained supplier relationships. We identify where WHT arises in your transactions, apply the correct rates including Double Taxation Agreement relief, file and remit on time, and keep certificates and tax credits properly reconciled.
- Registered KRA Tax Agent
- 15 years of experience
- DTA & non-resident payment advisory
What we can help you with
The full scope of this service. If what you need isn't listed, ask. It may sit in a neighbouring service.
- Withholding tax advisory and compliance
- Review of transactions subject to withholding tax
- Determination of applicable withholding tax rates
- Monthly withholding tax computations
- Preparation and filing of withholding tax returns
- Timely remittance of withholding tax to KRA
- Withholding tax reconciliation and ledger reviews
- Review of supplier withholding tax certificates
- Assistance in claiming withholding tax credits
- Advisory on resident and non-resident withholding tax obligations
- Double Taxation Agreement (DTA) advisory
- Tax planning for contractual and consultancy arrangements
- Withholding tax health checks
- KRA withholding tax audit support and dispute resolution
- Staff training on withholding tax compliance
What your business gains
Comply with Kenya's withholding tax legislation across resident and non-resident transactions.
Reduce the risk of penalties, interest and disputes arising from incorrect withholding tax treatment.
Improve cash flow through proper management, reconciliation and correctly handled certificates.
Strengthen internal controls over procurement, accounts payable and tax compliance processes.
Get expert guidance on complex contractual and cross-border withholding tax matters.
How we work
- 01
Transaction assessment
We review your operations, procurement processes and payment arrangements to determine exactly where withholding tax obligations arise.
- 02
Compliance review
We examine contracts, invoices, accounting records and past WHT filings against the Income Tax Act to flag incorrect treatments, missed obligations and exposure.
- 03
Advisory and implementation
We set up correct computation, filing and remittance routines, sort certificate issuance and reconciliation, and put effective internal controls in place.
- 04
Ongoing compliance support
We advise on new transactions, legislative changes and cross-border payments, and represent you in KRA reviews, audits and disputes.
Frequently asked questions
What is withholding tax?
A tax deducted at source by a payer from specified payments before the balance is paid to the recipient. The tax withheld is remitted to KRA on the recipient's behalf and may be a tax credit or a final tax, depending on the nature of the income and the applicable provisions of Kenyan tax law.
Which payments are subject to withholding tax?
Generally: professional and consultancy fees, management and technical fees, commissions, royalties, interest, dividends, contractual payments, rent and certain payments to non-residents. The treatment depends on the nature of the transaction and the status of the recipient.
Can you review our historical withholding tax compliance?
Yes. We conduct comprehensive reviews to identify compliance gaps, incorrect rates, missed deductions and unreconciled certificates, and regularize historical positions before they become significant liabilities.
How can withholding tax affect my business?
Incorrect management can lead to additional assessments, penalties, interest, cash flow strain and supplier disputes. Proper management protects deductible expenses and keeps supplier relationships healthy through accurate certificates.
Do you advise on withholding tax for international transactions?
Yes. We advise businesses making payments to non-residents on domestic WHT provisions, relevant Double Taxation Agreements, available treaty reliefs and the resulting obligations in Kenya.
Strengthen your withholding tax compliance
Routine compliance, a comprehensive review or KRA audit support: manage withholding tax obligations confidently and efficiently.