ADVOKS GLOBAL · KENYA
Tax Procedures Act
42A. Appointment of Value Added Tax withholding agent
Edition: 2026-09-01 · In force
42A. Appointment of Value Added Tax withholding agent
(1)The Commissioner may appoint a person to withhold two per cent of the taxable value on purchasing taxable supplies at the time of paying for the supplies and remit the same directly to the Commissioner:Provided that the withholding tax shall not apply to the taxable value of zero-rated supplies and registered manufacturers whose value of investment on the 31st December, 2024 is at least two billion shillings.(2)The Commissioner may, at any time, revoke the appointment of a tax withholding agent made under subsection (1), if the Commissioner deems it appropriate to do so.(3)Subsection (1) shall not apply to taxable supplies for official aid-funded projects.(4)For the avoidance of doubt, the withholding of tax under subsection (1) shall not relieve the supplier of taxable supplies of the obligation to account for tax in accordance with this Act and the regulations.(4B)The tax withheld under this section shall be remitted to the Commissioner within five working days after the deduction was made.(4C)A person who is required under this section to withhold tax and, without reasonable cause—(a)fails to withhold the whole amount of the tax which should have been withheld; or(b)fails to remit the amount of the withheld tax to the Commissioner by the fifth day of the following month,shall be liable to a penalty of ten per cent of the amount not withheld or remitted.(5)A person who, prior to the commencement of this section, was appointed to withhold tax under section 25A of the Value Added Tax Act (Cap. 476) shall, notwithstanding the repeal of that section, be deemed to be a person appointed under subsection (1),Provided that this provision shall not be construed to impose any penalty whatsoever on any such person who ceased to withhold tax for any period following the repeal of that section upto the 8th June, 2016.