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Filing & Paying Taxes - KRA
Filing & Paying Taxes - KRA
EN SW
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11/8/22, 11:19 AM Filing & Paying Taxes - KRA
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PIN Registration
Types of Taxes
EN SW
1. Pay As You Earn (PAYE)
PAYE is deducted monthly at the prevailing individual income tax rates, on or before 9th of the following month.
How do I file for PAYE?
PAYE returns are filed online via itax
Companies and Partnerships without PAYE to remit should file a NIL return via iTax.
2. Corporation Tax
What is the Corporation Tax rate?
Resident Companies are taxed at a rate of 30%.
Non-resident companies are taxed at a rate of 37.5%.
Do Partnerships pay Corporation Tax?
If the annual tax liability is projected to exceed Kshs. 40,000, then you should pay in installments via iTax. This is called
Installment Tax.
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Read about filing & paying SW Tax below.
3. Installment Tax
Installment Tax is paid in advance at four equal installments. It is paid before the year of income is over and before the accounts
of the business are prepared to establish the actual tax payable.
Installment tax is computed in either of the following ways;
Prior year basis - Prior year tax payments are multiplied by one hundred and ten per cent.
Current year basis - In this method, especially for new business or those who were in losses and turned to profitability,
installment tax is determined by estimating the current year profit and tax payable thereon
The following persons are not required to pay instalment taxes;
1. Individuals whose only income is from employment and PAYE has been deducted.
2. Individual whose final liabilities or whose tax payable from other sources of income in a year is below Kshs. 40,000.
3. Installment taxes are not payable by persons who are subject to Turnover Tax (TOT).
What is the rate of taxation for Installment Tax?
Schedule of Installment Tax payments:
25% by the 20th day of the 4th month.
25% by the 20th day of 6th month.
25% by the 20th day of 9th month.
25% by the 20th day of 12th month.
Installment Tax for companies in the Agricultural Sector
75% which is the first 3 installments, combined and paid by the 20th day of 9th month.
25% is paid by the 20th day of 12th month.
After the accounts of the business are prepared to establish the actual tax payable, any balance of tax payable should be paid
on, or before, the last day of the 4th month following the end of year of income or the accounting period.
4. Withholding Tax
What is the rate of taxation for Withholding Tax?
Withholding Tax rates vary depending on the income, and whether the recipient of the income is resident or non?resident.
What are the prevailing Withholding Tax rates?
How do I pay withholding Tax?
Payment is done via iTax.
Generate a payment slip and present it, with the tax due, at any of the KRA appointed banks.
After successful payment of Withholding Tax, both the Withholder and Withholdee will receive a withholding certificate via email.
What is the penalty for late payment?
What is exempt from Withholding Tax?
5. Advance Tax
Advance tax is paid before a public service vehicle or a commercial vehicle goes for annual inspection.
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It is taxed at 10% on the gross rent received and no expenses are allowed.
The tax should be filed monthly via iTax, on or before the 20th of the following month.
NOTE: Residential Rental Income Tax is a final tax. Therefore, you do not have to declare it on your annual Income Tax return.
Commercial Rental Income Tax
It is taxed at the respective annual income tax rates and filed through the annual Income Tax Returns, on or before the last day of
the 6th month after the end of the accounting period (irrespective of the amount).
Making claims on Commercial Rental Income Tax
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8. Excise Duty EN SW
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Agreement signed betweenSW
the parties become null and void.
Transaction becomes inadmissible evidence in a Court of Law.
When is Stamp Duty due?
The tax rate for Betting, Lottery, Gaming and Prize Competition taxes is 15%.
Withhold as tax on winnings is 20%.
How do I pay Betting and Pool Tax?
The tax is paid for on or before the 20th of the following month.
Generate a payment slip online via iTax which you will use to make the payment at any of the KRA appointed banks.
Email address
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