The Sierra Leone government has cancelled a Mega Airport construction deal that was to be funded by Chinese loans. While making the announcement, Sierra Leone’s Minister for Transport and Aviation said: “After serious considerations and diligence, it is the Government’s view that (it) is uneconomical to proceed with the construction of the new airport when the existing one is grossly under utilized.” The minister was speaking to local journalists, this week.
The project that was to be executed by a Chinese construction company is estimated to cost an excess of 300 Million US Dollars and was to be completed in 2022. The project was commissioned by the former head of state, Ernest Bai Koroma; in March this year, 2018. This cancellation comes after the Chinese got criticism overseas and locally, here in Kenya, for inflated loan costs. The Chinese are reportedly in a move to seize Zambia’s Power utility firm for defaulting on a loan facility advanced to the Zambia government. Read full details here:
The Kenya Revenue Authority has written E-mails to teachers who marked last year’s examinations requiring them to pay with holding taxes when they file their 2019 returns. The E-mail seen by our crew requires the teachers to remit 20% of their marking fees earnings to the tax collector in 2019. The Kenya National Examinations Council, KNEC, paid 5% tax that was deducted from total earnings by the contracted officers. Contact KRA at any Huduma Centre close to you for any queries, assistance and/ or clarifications.
The big question, then, begs..’what is withholding tax? How can withholding tax be paid’?
WHAT IS WITH HOLDING TAX, HOW CAN ONE PAY WITH HOLDING TAX?
This is a method whereby the payer of certain incomes is responsible for deducting tax at source from payments made and remitting the deducted tax to KRA.
The percentage deducted varies between incomes and is dependent on whether you are a resident or non- resident.
The relevant rates are as follows:
Description
Resident
Non – Resident
Artists and entertainers
–
–
Management fees
5%
20%
Professional fees
5%
20%
Training fess (inclusive of incidental costs)
5%
20%
Winnings from betting and gaming (w.e.f. 1 Jan 2014)
20%
20%
Royalties
5%
20%
Dividends (nil for resident shareholders with>12.5%)
5%
10%
Equipment (movable) Leasing
N/A
5%
Interest (Bank)
15%
15%
Interest (Housing Bond – HBI)
10%
15%
Interest on two – year government bearer bonds
15%
15%
Other bearer bonds interest
25%
25%
Rent – buildings (immovable)
12%
30%
Rent – others (except aircraft)
N/A
15%
Pensions/provident schemes (withdrawal)
10 – 30%
5%
Insurance Commissions
10%
20%
Consultancy and agency(from 1 July 2003)
5%
20%
Contractual and agency (from 1 July 2003)
3%
20%
Telecommunication services/Message transmission
–
5%
Natural Resource Income (w.e.f. 01/01/2015)
5%
20%
How do I pay Withholding Tax?
Any amount withheld, should be remitted to KRA on or before the 20th day of the following month.
Paying via the Itax Portal:
Payment of withholding tax is done online via iTax, generate a payment slip and present it at any of the appointed KRA banks to pay the tax due.
