KRA Advocacy Session
Frequently asked questions ( FAQs )
1 . Why should I update my Ipage ? iTax provides for capture of additional registration data not previously captured . The information required in iTax includes among others your county , employer , cell phone contact , unique email address , tax agent , etc .
2 . Where can I Update my Ipage Go to https :// itax . kra . go . ke Or ; Visit the KRA website www . kra . go . ke . Click on Online services and select PIN Registration to access the iTax portal .
3 . Do I need a VAT certificate if I have a PIN certificate ? No . PIN certificate is sufficient . You are required to add the VAT obligation on the pin certificate .
4 . What Corporation Tax incentives do newly listed companies enjoy ? The preferential corporate income tax rates for newly listed companies was deleted in the finance act 2020 and will now be subject to 30 % corporate income tax rate with effect from 25 th April , 2020
5 . Can I claim my company expenses ? When filing your Corporation Tax Return ( also referred to as Income Tax - Company Return ) you are allowed to claim expenses that have been wholly and exclusively incurred in the production of your income .( Section 15 of the Income Tax act )
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Turnover Tax ( TOT )
6 . What is Turnover Tax ( Turn over Tax ) Turnover Tax ( TOT ) is a tax charged on gross sales of a business as per Sec . 12 ( c ) of the Income Tax Act . The tax is payable by resident persons whose gross turnover is Ksh 1,000,000 and up to Ksh 50,000,000 in any given year .
7 . What is the rate of TOT and the due date for filing and paying ? Turnover Tax is charged at the rate of 1 % on gross sales . The due date for filing and paying TOT is on or before the 20 th day of the following month .
8 . Are there any exemptions under Turnover Tax ? Income exempt from TOT include ;
• Persons with business income below Ksh 1,000,000 and above Ksh . 50,000,000
• Employment income ,
• Rental income ,
• Management and professional services .
• Any income subject to final withholding tax
9 . Can a taxpayer choose not to be subject to Turnover Tax ?
• Taxpayers who are eligible for Turnover Tax may opt not to be under the provisions of this tax by paying tax under the income tax regime .
10 . Is Turnover Tax a final tax ?
• Yes . Persons who declare and pay Turnover Tax will not be required to declare the said income in the annual income tax returns .
Value Added Tax ( VAT )
1 . How do I account for VAT on imported services ? Importers of services are required to generate a payment slip online via iTax and make payment at any of the KRA appointed banks .
2 . When is VAT on Imported Services due ? VAT on imported services is payable at earlier of :
• The taxable service is received ; or
• An invoice is received in respect of the service ; or
• Payment is made for all or part of the service .
Tax paid on imported services for use in the registered person ’ s taxable business may be deducted as input tax in subsequent VAT 3 returns .
3 . As an individual / organisation should I pay VAT and income tax as well ? Income tax is a compulsory tax obligation whereas , for VAT , you register and pay if dealing with vatable supplies .
4 . How can a VAT registered taxpayer come on board TIMS ? KRA has published guidelines for taxpayers which can be accessed on this link ; https :// kra . go . ke / images / publications / Guidelines-for- VAT-Taxpayers-2021 . pdf
Kenya Cottage - DEAR Edition