WITHHOLDING TAX

Withholding tax on betting was passed and introduced into the Finance Act; it is 20% of your net possible win i.e.  total possible win – stake.

ODDS

5.00

STAKE

100

POSSIBLE WIN

500

WITHHOLDING TAX

80

PAYOUT

420

e.g.     withholding tax= 20%*(500-100)

 

EXCISE DUTY

Excise duty on betting was recently passed and introduced into the Finance Act; it is 20% of the amount wagered or stake

ODDS

5.00

STAKE

100

STAKE AFTER TAX

83.33

POSSIBLE WIN

416.67

WITHHOLDING TAX

63.33

PAYOUT

353.33

e.g.     Excise Duty=100*(100/120)

 

Therefore, your final payout is determined when all taxes are applied as follows:

{[(Stake x Odds)÷1.2]-Stake}x0.8 +Stake.

 

Therefore, if your stake is Ksh.100 and Total Odds is 5,

Final Payout={[(100×5)÷1.2]-100}x0.8+100 = Ksh 353.34