Josephat Kombo, CPA

Christian. God First. Family.
Administration | Accounting | Finance | Budgeting | Strategic Planning | Risk Management | Projects Mgt.

[Josephat Kombo, CPA @ItsKombo]

@PolitlcsUK 9 HOURS screen time! They have been 'saved' from themselves

[Sky News @SkyNews]

BREAKING: Prime Minister Sir Keir Starmer has announced a social media ban for under-16s.

Live updates: https://t.co/Jxi67uC5Qk

[Ted Wilson @pastortedwilson]

“The time will come when they will not endure sound doctrine…and they shall turn away their ears from the truth, and shall be turned unto fables.” (2 Tim. 4:3,4, KJV)

[CPA Peter Ndirangu @pitandirangu]

UNDERSTANDING WITHHOLDING TAX AND TAX RETURN FILING UNDER KENYA TAX REGIME

ARE THEY FINAL TAX ?

Some are, some are not——

Let’s dive

Withholding tax is a tax withheld at source by person or an entity making payments for services offered or for income earned through a scheme or an investment. You must have encountered this if you are a consultant or a supplier and you were asking yourself why you couldn’t receive the full amount as invoiced!

The withholding agent remits the amount withheld as Tax to the Tax authority on your behalf and the same is communicated to you through a Withholding certificate issued by the Tax authority. Not all income are subject to withholding Tax in Kenya;

Examples of payments/ incomes subject to withholding tax include, among others:
• Management, professional or training fees
• Consultancy fees, Legal fees, Audit fees
• Contractual fees • Winnings
• Appearance at or performance to entertain
• Royalties
• Interest
• Dividends

Some withholding Tax are final while others are not.

If a withholding Tax is final, it means that you are not expected to pay more tax on the income received and hence you are not required to declare that income again when filing the annual Tax return.

If the withholding Tax is not final , it mean that , the tax withheld is deemed as a tax paid in advance which should be offset with the tax payable upon declaration of that income and all other incomes while filing of the annual return.

This means that you will have to declare the income earned wile filing the return, deduct any allowable expense as provided for by the income Tax Act
(Sec 15) and pay any balance of tax after offsetting the Tax withheld at the source.

SO; WHEN IS WITHHOLNG TAX A FINAL TAX
1. When its a withholding Tax on qualifying dividends paid to a Kenyan resident
2. When its a Withholding tax on qualifying interest paid to a Kenyan resident
3. When its a Withholding Tax on a payment to a non-resident person
4. When its a Withholding Tax on interest income from MMF

WHEN IS WITHHOLNG TAX NOT FINAL TAX?

If a withholding Tax is charged on the following income, you should know that it’s not a final tax and hence you are expected while doing your annual returns to declare that income and pay any balance of tax to the Tax man.

1. Withholding tax on non-qualifying interest income
2. Withholding tax on management and professional consultancy fee
3. Withholding Tax charged on insurance commissions
4. Withholding Tax on Legal fees and Contractual fees

If you received such income and a withholding Tax was charged; now you know it was not a final tax and hence you should declare that income when filing your returns .

Disclaimer; This is for information purpose only and any omission does not absolve you from making an accurate return to the expectation of the Taxman. -END-

[Josephat Kombo, CPA @ItsKombo]

@DisrespectedThe The Donor (most often they are donated), can even set aside a portion of funds to 'pay' the caretaker (because the small fee can't be enough)....

[Josephat Kombo, CPA @ItsKombo]

@DisrespectedThe While drilling boreholes & other initial costs may be huge. Such boreholes should be entrusted to a trust group that collects 'a very small fee'. This will encourage responsible use & the little fee can be used for maintenance. I've seen a similar problem in West Pokot

[Ted Wilson @pastortedwilson]

Hello, friends. Jesus wants us to hold on to Him, and to His full Bible truth. And He wants us to know that He is with us--guarding and caring for us as we go through trials and challenges. God is the broad shield of Omnipotence! #StandFirm

[David Maraga @dkmaraga]

Mimi ni Mkatiba na #KatibaNdioTiba

[Josephat Kombo, CPA @ItsKombo]

@NateXclusive_ Assume it was a loan of Kes. 594,000; repaid weekly at Kes. 9,000 for 2 years. At the end, he would have paid almost 340,000 in interest. The Effective Annual interest rate (APR) would be around 63% p.a. That's extremely high compared to bank loans (around 14%–20% p.a in Kenya).

[Business Registration Service (BRS) @BRS_Kenya]

𝗖𝗼𝗻𝘃𝗲𝗿𝘁𝗶𝗻𝗴 𝗮 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗡𝗮𝗺𝗲 𝘁𝗼 𝗮 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝗖𝗼𝗺𝗽𝗮𝗻𝘆

𝗔 𝘀𝘁𝗲𝗽-𝗯𝘆-𝘀𝘁𝗲𝗽 𝗴𝘂𝗶𝗱𝗲.

[Adventist Church @adventistchurch]

Maybe you don't have a major problem like a scary diagnosis or financial hardship. Your request could be small like a call from a loved one or a tank of fuel. We want to pray for and with you. Send us a DM or leave a reply.

[Josephat Kombo, CPA @ItsKombo]

Hey, what can you do with 1hr or 3hrs bundle bila waas?
Let me tell you. You can watch a sermon, a movie or make a video call uninterrupted courtesy of B-live. Dial *544# and Browse #BilaWaas. Your data your terms. No stress, No limits. #BLiveNiFom #TimeInaChange @SafaricomPLC.

[Adventist Church @adventistchurch]

Society pushes its own ideas of relationships, but God has given us something better. Here are 7 ways to keep God at the center of your dating life. Have any of these principles made a difference in your life? Share in the comments!

[Cyprian, Is Nyakundi @C_NyaKundiH]

I’ve listened to audios of Albert Ojwang speaking with his friends after his arrest asking them to come see him.
He sounded calm, aware, and never hinted at being suicidal.

This story of “injuring himself” and dying just doesn’t add up.

It won’t add up. It never will.

#JusticeForAlbertOjwang

[African Hub @AfricanHub_]

Zambian President demands refund of fees for every rejected visa from the European Union (EU) and the United Kingdom (UK)

[ENA Coach @EnaCoach]

BREAKING NEWS

We are delighted to share that one of our esteemed passengers safely delivered a baby this morning while traveling aboard our bus, KDK 035U.

We extend our heartfelt appreciation to our crew and fellow passengers for their incredible support and swift.

[Josephat Kombo, CPA @ItsKombo]

@SakajaJohnson are those the 'banned polythene papers'? ama @NemaKenya?

[Josephat Kombo, CPA @ItsKombo]

Do you remember when you joined X? I do! #MyXAnniversary

[Josephat Kombo, CPA @ItsKombo]

Don't be surprised. If swearing is done today immediately after the National Assembly vote result is declared.

[Josephat Kombo, CPA @ItsKombo]

Deputy President Rigathi Gachagua has been impeached by the Senateof the Republic of Kenya.