NAIROBI, Kenya, Dec 27 – Kenya Revenue Authority has assured taxpayers of a smooth implementation of the presumptive tax set to take effect from January 1, 2019.
KRA Commissioner for Innovation and Risk Management, Mohamed Omar, said the Authority has conducted sensitization seminars with a view to ensure that taxpayers who fall under this tax bracket transition from turnover tax.
“Presumptive tax, which will be charged at 15 percent of the annual business permit or trade license fee, was introduced in the 2018/19 financial year budget statement to replace the current turnover tax,” said Omar.
The new tax will apply to small and medium enterprises whose annual turnover is less than Sh5 million.
However, businesses that offer management and professional services, incorporated companies as well as rental business are exempted from paying presumptive tax.
In a statement, Omar said taxpayers will be required to make payment for presumptive tax at the point of obtaining business permits by generating a payment registration number on the iTax platform.
“The due date for presumptive tax is the date payment for a business permit or trade license is made,” said Omar.