Tubonge Tax

A foreign supplier of digital services without a fixed place of business in Kenya (overseas supplier) to a recipient in Kenya may register under the simplified tax registration framework via the iTax portal; itax.kra.go.ke/KRA-Portal/ The User guide for the simplified registration process is accessible on the KRA Website using this link; https://www.kra.go.ke/images/publications/USERGUIDE---DST-NO...

Each year we dedicate the month of October to appreciate taxpayers for their contribution to national development. Taxpayer's Month is an annual event that brings together distinguished taxpayers from various sectors of the economy. This year, Taxpayer's month theme is "Pamoja Twaweza" highlighting the efforts Kenyans have put in place to fight the Covid-19 pandemic and to ensure post-pandemic eco...

The Tax Invoice Management System (TIMS) is an upgrade of the current Electronic Tax Register (ETR) regime that was rolled out in 2005. It will facilitate electronic tax invoice management through standardization, validation, and transmission of invoices to KRA on a real-time or near real-time basis. All VAT-registered taxpayers are required to comply. The effective rollout date is 1st August 2021...

Voluntary Disclosure Programme is a programme where a taxpayer confidentially discloses tax liabilities that were previously undisclosed to the Commissioner for the purpose of being granted relief of penalties and interest of the tax disclosed. Where the Commissioner is satisfied with the facts disclosed in the application, the taxpayer shall be granted a relief of the interest and penalty due on...

Turnover Tax is a tax charged on businesses whose gross turnover is more than KES 1,000,000 but less than KES 50,000,000 in any given year. --- Send in a voice message: https://anchor.fm/storizaushuru/message

Who should file and pay for Income Tax? --- Send in a voice message: https://anchor.fm/storizaushuru/message

Did you know that Section 5A (2) of the Kenya Revenue Authority Act of 1995 introduced a reward of KES 500,000 to any person who provides information, that leads to enforcement of tax laws? That is; where the information provided leads to the identification of unassessed duties or taxes identified, whichever is less. where the information provided leads to the recovery of unassessed duties or taxe...

Taxation of rental income under the annual regime Rent is charged on the actual amount received. Expenses incurred to generate rent are allowed under section 15 of the Income Tax Act. Tax is calculated under the annual individual graduated scale or corporate rate of 30%. Rent on non-residential buildings(Commercial) is a taxable supply under the VAT Act(No.35 of 2013)- Laws of Kenya. Who qualifies...

The digital service tax will be paid by the digital service provider whether overseas or locally in Kenya. The provider of the digital service will file a return and pay the DST. Overseas entities can appoint a tax representative in Kenya to register, file, and pay digital service tax on their behalf. --- Send in a voice message: https://anchor.fm/storizaushuru/message

For a taxpayer to qualify for a waiver application all the principal taxes must be fully paid before an application can be lodged for consideration for a waiver. To qualify for a waiver, the taxpayer has to be compliant in all taxes concerning filing and payment of taxes. The applicant's past compliance record is taken into account when processing the waiver application. --- Send in a voice messag...

The Residential Rental Income upper threshold has been increased from KES 10 million to KES 15 Million per annum.  The lower threshold has been also increased from KES 144,000 to KES 288,000 per annum to align with the current lower individual tax band.  This is aimed at providing an opportunity for more landlords to comply with the simplified regime which has minimal compliance costs.&n...

Forwarded parcels may be re-assessed if the owner disputes the tax values and produces the actual invoice/receipt to determine actual values of the items. During assessment, the customer produces the transaction value/invoice/declared value if they have none. Different items attract different rates. The taxes payable include import duty 0%, 10%, 25%,   VAT-14%, Excise duty 10% or calcula...

Voluntary Disclosure Program (VDP) is meant to provide an avenue for taxpayers with undisclosed income to disclose the same without undue imposition of punitive penalties and interest. It is aimed at improving revenue collection by bringing more taxpayers from the underground economy into the tax net. --- Send in a voice message: https://anchor.fm/storizaushuru/message

Introduction of Digital Service Tax (DST) does not amount to double taxation. As a matter of principle, taxes are levied in the country where the income is sourced or derived. If, for example, company A sells a product or service in Kenya, the tax will be due in Kenya where the income is derived or sourced. --- Send in a voice message: https://anchor.fm/storizaushuru/message

Welcome to the first episode of Tubonge Tax your all-round podcast on Taxes brought to you by the Kenya Revenue Authority. Tubonge Tax will unpack the tax myths, jargons and leave you more enlightened on how, when and which taxes to pay and file. Tubonge Tax promises to give you comprehensive tax analysis, equip you with tax knowledge and empower you to make informed decisions on tax matters. ---...