Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
KRA Commissioner General James Githii Mburu in a statement on Tuesday further advised  businesses and individuals experiencing challenges to agree with the authority’s debt team on a favorable repayment plan/CFM/FILE

Finance

Turnover and Presumptive Taxes to benefit SMEs says KRA

KRA Commissioner General James Githii Mburu/CFM – Moses Muoki

NAIROBI, Kenya, Jan 15 – The Kenya Revenue Authority says that the re-introduction of both the Turnover (TOT) and Presumptive tax is for the benefit of all Kenyans.

Through a statement in the local dailies, the Authority points out that this will fairly spread the responsibility of developing the country to all citizens and residents of Kenya.

It explained that other benefits of these taxes include simplified filing and payment processes. Eligible taxpayers will only be required to keep a daily gross sales record.

It further pointed out that the tax rate of 3 percent is lower relative to other rates of tax on income and that an individual is not required to file monthly VAT returns.

Turnover Tax is payable by any resident person whose turnover from business does not exceed or is not expected to exceed Kshs 5,000,000 during any year of income.

The TOT does not apply to employment income, Rental income, limited liability companies, management and professional services.

TOT payers are also liable to pay Presumptive Tax at a rate of 15 per cent of the Single Business Permit fee payable or license payable. However, Presumptive Tax paid will be offset against the TOT payable.

Eligible taxpayers are advised to log onto iTax, add the TOT obligation, file the monthly returns and make payment,they will be required to register online or through their mobile phones.

A tax payer can choose not to be subject to the TOT and presumptive tax by applying to the commissioner in writing in which case the taxpayer is expected to prepare accounts and file returns annually under the normal income tax regime.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...