Reduce withholding tax on advertising and marketing services: A call for fairness and growth

A number of advertising billboards erected along the Globe Cinema Roundabout as pictured on March 22, 2023. 

Photo credit: File | Nation Media Group

The current financial bill in operation increased the withholding income tax from 2 percent for 5 percent on Management fees, professional fees, training fees and contractual fees on all companies in the Republic of Kenya.

The Advertising sector has been badly affected by this increase mainly due to the fact that on average Advertising companies make a 10 percent profit margin on revenues, thus making the 5 percent and advance 50 percent corporate tax rate.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.