DISCLAIMER: This document is intended to provide Lynk Pros with the necessary information on new tax regulations. It is not exhaustive. All Lynk Pros are responsible for seeking tax guidance from the Kenya Revenue Authority or other registered tax entities for further support.

Frequently Asked Questions

1. What is a withholding tax?

   The amount of a Contractor's pay withheld by the employer and remitted to KRA on or before the 20th day of the following month.

2. What is the withholding tax rate?

   The withholding tax rate for contractors is 3% for residents, non-residents tax may vary depending on the country of residency. This tax will be charged on income(Labour) for service rendered or work done that is above Kshs 24,000. The amount withheld will be 3% of the cumulative amount received in every single month.

3. Why is LYNK withholding?

   It is a requirement that any income above Kshs 24,000 for services rendered should be declared through the process of filing returns. This process will ensure that both Lynk and its Pros are compliant with Kenyan tax law.

4. I am not a business/I don't have a registered business, will 3% still be withheld?

   Yes, you do not need to have a business for a company to be required to withhold tax on your income.

5. When will Lynk start withholding?

   Effective 1st September 2020.

6. Implications to tax filing e.g. keeping records of transport, tools, and materials, etc.

   You do not need to file returns on transport, materials and any other cost that Lynk does not declare as income. You should only file tax based on the WHT certificate you receive.

7. When is the withholding reflected on my account.

   By the 20th of the next month you should receive a WHT certificate, the certificates are sent directly from itax to your email.

8. Is Withholding tax the final tax?

   Withholding tax is not a final tax. One is required to declare the income and the withholding tax certificates upon filing individual tax returns and pay any tax due

9. How do I file my returns?

   Follow the instructions as highlighted on this video.

   https://youtu.be/akmfCEnTf1U

10. What happens if I don't file my returns?

    KRA charges you a onetime penalty of Kshs 5,000.

11. What happens if I have never filed any returns? Will I be fined by KRA?

    If you already have a KRA pin but have not registered on i-tax you will not incur any penalties. Penalties will be incurred if you had already registered on i-tax but have never filed an annual return.

12. How do I get a KRA pin?

    You can get the pin from the cyber or just get it by yourself through the KRA portal as shown below.

    New Member KRA pin registration