> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bumara.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Withholding tax

> Tax you deduct when paying certain suppliers, and how to file the monthly return with ZRA.

<Warning>
  **Rates, thresholds and deadlines change.** The figures on this page reflect the rules Bumara
  applies today and are given as a guide. The regulator's current published position always
  governs. Bumara applies the rate in force when your filing is calculated — always check the
  figures shown on your actual filing rather than relying on this page, and take professional
  advice on how the rules apply to your business.
</Warning>

Withholding tax is tax you deduct from a payment to a supplier and remit to ZRA on their behalf.
You pay the supplier the net amount, and ZRA the deduction.

It catches people out because the obligation sits with **you**, the payer, not with the supplier.
If you fail to withhold, ZRA looks to you for the amount — not to the person you paid.

## When it applies

Withholding tax applies to certain categories of payment, including:

* Rent
* Professional and consultancy fees
* Management fees
* Commissions
* Certain contractor payments
* Interest and royalties
* Dividends

Rates differ by category and by whether the recipient is resident. The applicable rate is shown
when you record the payment.

<Note>
  If you are unsure whether a specific payment is subject to withholding, ask your accountant
  before you pay. Correcting a missed deduction after the money has left is far harder than getting
  it right at the time.
</Note>

## How it works in practice

<Steps>
  <Step title="You receive an invoice from a supplier">
    Say a consultant invoices you K10,000 for professional services.
  </Step>

  <Step title="You determine the withholding rate">
    Based on the category of payment and the supplier's residence status.
  </Step>

  <Step title="You pay the supplier the net amount">
    The invoice amount less the withholding.
  </Step>

  <Step title="You issue the supplier a withholding certificate">
    They need it to claim the credit against their own tax. This is not optional courtesy — it is
    part of the obligation.
  </Step>

  <Step title="You remit the deduction to ZRA">
    Along with your monthly return.
  </Step>
</Steps>

## When the return is due

**14 days after the period end**, the same as other ZRA monthly returns.

| Period   | Ends        | Due         |
| -------- | ----------- | ----------- |
| January  | 31 January  | 14 February |
| February | 28 February | 14 March    |
| March    | 31 March    | 14 April    |

## Filing the return

<Steps>
  <Step title="Open the filing">
    ZRA workspace → **Filings** → withholding tax for the month.
  </Step>

  <Step title="Review the deductions for the period">
    Payments you recorded as subject to withholding are listed. Check the list is complete —
    a payment made outside Bumara will not appear.
  </Step>

  <Step title="Add anything missing">
    For each: the supplier, their TPIN, the gross amount, the category, the rate and the amount
    withheld.
  </Step>

  <Step title="Check the total">
    The total withheld is what you remit. Reconcile it against your bank before submitting.
  </Step>

  <Step title="Upload supporting documents">
    The schedule of payments, and copies of the certificates issued.
  </Step>

  <Step title="Confirm and request submission">
    By the 14th.
  </Step>
</Steps>

## What is reported per payment

| Field                | Meaning                                        |
| -------------------- | ---------------------------------------------- |
| **Supplier name**    | Who was paid                                   |
| **Supplier TPIN**    | Their taxpayer identification number           |
| **Payment category** | Rent, professional fees, commission, and so on |
| **Gross amount**     | The full invoice amount before deduction       |
| **Rate applied**     | The withholding rate for that category         |
| **Amount withheld**  | What you deducted and are remitting            |
| **Net paid**         | What the supplier actually received            |

## Withholding certificates

Every supplier you withhold from is entitled to a certificate showing what was deducted. Without
it they cannot claim the credit, and they will chase you for it.

Issue the certificate at the time of payment, not at year end. It is much easier to produce while
the payment details are in front of you.

<Warning>
  Failing to issue certificates causes disputes with suppliers and leaves you unable to evidence
  the deductions if ZRA queries them. Treat the certificate as part of making the payment.
</Warning>

## Nil returns

No withholdable payments in the month? File a nil return with the reason. The rules are the same
as every other ZRA obligation — an unfiled nil return is still an unfiled return.

## Common mistakes

| Mistake                               | Consequence                                              |
| ------------------------------------- | -------------------------------------------------------- |
| Not withholding at all                | ZRA recovers the amount from you, with penalties         |
| Withholding at the wrong rate         | Under-remittance, corrected with interest                |
| Paying the supplier gross by mistake  | You must still remit the deduction — from your own funds |
| Not issuing certificates              | Supplier disputes; no evidence for ZRA                   |
| Missing payments made outside Bumara  | An understated return                                    |
| Treating it as the supplier's problem | It is not — the obligation is yours                      |

## Reconciling before you file

Before submitting, check three things agree:

1. The payments listed on the return
2. The payments in your accounts for the period
3. What actually left your bank

Any of the three disagreeing means something is missing or duplicated. Resolve it before filing,
not after.

<Note>
  Related: [ZRA overview](/regulators/zra/overview) and
  [Recording payments](/invoicing/recording-payments).
</Note>