The Kenya Revenue Authority (KRA) has issued a notice reminding the general public of the obligation to withhold tax when making payments for royalties.
According to the Income Tax Act, (Chapter 470 of the Laws of Kenya), royalty is defined as a payment made as a consideration for the use of or the right to use:
- any copyright of a literary, artistic or scientific work; or
- any cinematograph film, including film or tape for radio or television
- broadcasting; or
- any patent, trade mark, design or model, plan, formula or process; or
- any industrial, commercial or scientific equipment,
or for information concerning industrial, commercial or scientific equipment or experience, and any gains derived from the sale or exchange of any right or property giving rise to that royalty;
The withholding tax rates for royalties are 5% for royalties paid to residents and 20% for royalties paid to non-residents.
KRA will hold a sensitization forum for withholding tax on payment of royalties on 22nd November 2019 at 9.00am at the Main Hall on the 5th Floor of Times Tower.
If you require more information, please contact us at info@cfllegal.com
