About the Service
"Withholding Tax Returns" is a service that involves the preparation and submission of tax returns related to withholding taxes. Withholding tax is a system where a payer withholds a portion of payments made to a payee and remits it directly to the tax authority on behalf of the payee. This withholding typically applies to various types of income, such as dividends, interest, royalties, and payments to contractors or freelancers. The service assists entities in accurately calculating the withholding tax due, preparing the necessary documentation, and submitting the withholding tax returns to the tax authority. It ensures compliance with tax laws and regulations governing withholding taxes and helps avoid penalties for incorrect or late filing.
The payer is required to generate a withholding tax certificate on iTax which is automatically sent to the payee once the payer remits the withholding tax to KRA. Withholding tax deducted should be remitted to KRA by the 20th day of the month following the month in which the tax was deducted.
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