It’s a basic requirement for businesses to file their returns as required by law. Every country has laws governing accountancy and compliance. We thus support, advice and maintain tax obligation such as PAYE, VAT, Income Tax, Rental Income Tax, Withholding Tax, Stamp duty, among others, and help tax payers’ achieve tax compliance status.
It is not possible to have compliance with gaps on your itax account. We therefore manage such obligation on the itax profile.
Our team of qualified Tax Experts is always prepared to help you determine the kind of tax obligation that is appropriate for your business. We’ll also work with you to prepare accurate tax returns on a monthly or annual basis with a view of minimizing business risks of unforeseen tax liabilities.
The following are the main taxes in Kenya;
a) Corporation Tax: Corporation tax in Kenya is a form of income tax that is levied on companies and branches. Resident companies are taxable at a rate of 30% while non – resident companies and branches are taxable at a rate of 37.5%. Corporate tax is paid in installments.
b) PAYE: Pay as you Earn in Kenya is a method of collecting tax at source from individuals in gainful employment. The employer deducts a certain amount of tax from his / her employee’s salary or wages on each payday then remit the tax to the Authority. This relieves the employee from paying taxes at the end of the year and shifts the responsibility to the employers.
c) Withholding Tax: Withholding taxes in Kenya are deducted at source from the following sources of income: Interest, dividends, royalties, the management or professional fees, training, commissions, pension or retirement annuity, rent, appearance or performance fees for entertaining, sporting or diverting an audience.
d) Value Added Tax (VAT) system in Kenya: Value Added Tax (VAT) is a tax on consumer expenditure introduced in Kenya in January 1990 to replace Sales Tax, which had been in operation since 1973. VAT is levied on consumption of taxable goods and services supplied or imported into Kenya and is collected by registered persons at designated points who then remit it to the KRA.
e) Advance Tax in Kenya: Advance tax is applicable to Matatus and other Commercial Vehicles. Any advance tax paid in Kenya becomes credit available for offset against the corporate tax liability.
f) Residential Rental Income Tax (MRI): The landlords pay residential rental income tax under a special category of tax specific to their needs. The taxpayers are not allowed any expenses or capital expenditure. It does not matter whether the taxpayers are individuals, corporate organizations, male, female, religious organization etc. The tax rate under this special category is 10 % of monthly rental income. The rental tax is based on the gross rental income collection per month and is payable by 20th of the following month.