How to File Turnover Tax in Kenya

Hey there! Are you curious about how to file turnover tax in Kenya? Well, you’ve come to the right place. In this conversational article, we’ll walk you through the process step by step, ensuring you have a clear understanding of what needs to be done. So, let’s get started!

What is Turnover Tax?

Turnover tax, also known as TOT, is a simplified tax regime introduced by the Kenyan government to make tax compliance easier for small businesses. It applies to individuals or businesses with an annual turnover not exceeding Kshs 5 million.

Who Should File Turnover Tax?

If you’re a sole proprietor, partnership, or self-employed individual operating a business in Kenya and your annual turnover does not exceed Kshs 5 million, you are eligible to file turnover tax. It’s important to note that turnover tax is applicable to both resident and non-resident businesses.

Registering for Turnover Tax

To file turnover tax, you first need to register for it. Here’s how you can do it:

1. Visit the Kenya Revenue Authority (KRA) website.
2. Navigate to the iTax portal and log in using your credentials. If you don’t have an account, you’ll need to register as a new taxpayer.
3. Once logged in, select “e-Registration” and choose “Turnover Tax.”
4. Fill out the required information, including your personal details, business details, and turnover information.
5. Submit the registration form, and you’ll receive a notification confirming your successful registration for turnover tax.

Calculating and Paying Turnover Tax

Now that you’re registered, it’s time to calculate and pay your turnover tax. Here’s what you need to do:

1. Determine your turnover for the tax period. Turnover refers to the total sales you’ve made within a specific time frame.
2. Calculate the turnover tax amount, which is 3% of your gross sales. This means if your total sales for the tax period were Kshs 500,000, your turnover tax liability would be Kshs 15,000 (500,000 * 0.03).
3. Generate an e-slip from the KRA iTax portal, indicating the turnover tax amount.
4. Make the payment either through an authorized KRA bank account or using other approved payment methods such as mobile money.
5. Ensure you retain a copy of the payment receipt as proof of tax compliance.

How to File Turnover Tax in Kenya

Apart from paying turnover tax, you also need to file periodic returns. Here’s how you can do it:

1. Log in to the KRA iTax portal using your credentials.
2. Navigate to the “Returns” menu and select “File Returns.”
3. Choose the tax obligation as “Turnover Tax” and select the applicable tax period.
4. Fill in the necessary information regarding your business turnover for the specific period.
5. Verify the details, submit the return, and keep a copy of the acknowledgment receipt.

Conclusion

Congratulations! You’ve now learned how to file turnover tax in Kenya. Remember to register for turnover tax, calculate and pay your tax liability promptly, and file returns as required. Compliance with tax obligations is essential for the smooth operation of your business and contributes to the growth of the nation. If you have any further questions or need assistance, feel free to reach out to the Kenya Revenue Authority for guidance. Best of luck with your tax filing journey!



from Cyber Dimension https://ift.tt/TZtKEuJ

Comments

Post a Comment

Popular posts from this blog

How to Retriven KRA PIN Using Email

Image
If you've forgotten your KRA PIN and want to retrieve it using your email address, you're in the right place. In this guide, I'll walk you through the process of retrieving your KRA PIN using your email address. We'll go step by step in a conversational manner to make it easy for you. Let's get started on retrieving your KRA PIN ! Understanding the Importance of a KRA PIN Before we dive into the process, let's briefly discuss the significance of a KRA PIN. The KRA PIN, issued by the Kenya Revenue Authority, is a unique identification number used for various tax-related purposes. It is essential for filing tax returns , conducting business transactions, and accessing government services. Keeping your KRA PIN secure and accessible is vital for managing your tax obligations effectively . Read Also: KRA PIN Certificate  kra pin  certificate Step-by-Step Guide to Retrieve Your KRA PIN using Email Follow these steps to retrieve your KRA PIN using your email
Read more

VAT Act in Kenya

Image
The VAT Act (Cap 476) is a key piece of legislation in Kenya that governs the administration, collection, and imposition of Value Added Tax (VAT) in the country. It provides the legal framework for the implementation of VAT and outlines the rights, obligations, and responsibilities of taxpayers, businesses, and the tax authorities. The VAT Act is designed to ensure the effective and efficient collection of VAT while promoting fairness and transparency in the tax system. It covers various aspects of VAT, including registration requirements, taxable supplies, tax rates, exemptions, invoicing obligations, record-keeping, and compliance procedures. It also defines the powers and functions of the Kenya Revenue Authority (KRA) in administering and enforcing VAT. Understanding and complying with the provisions of the VAT Act is crucial for businesses and individuals to fulfill their VAT obligations and avoid penalties or legal consequences. This article provides a comprehensive guide to the V
Read more

Forgot My KRA PIN

Image
This can guide you through the process of recovering your forgotten KRA PIN, and I'll also touch upon what to do if you've forgotten your KRA password. Losing your KRA PIN or password can indeed be frustrating, but there are steps you can take to resolve the issue Understanding the Importance of my KRA PIN Before we dive into the process, let's briefly discuss why a KRA PIN is essential . The KRA PIN, issued by the Kenya Revenue Authority, is a unique identification number used for various tax and taxation related purposes. It is crucial for filing tax returns , conducting business transactions, and accessing government services. Keeping your KRA PIN secure and accessible is vital for managing your tax obligations effectively. Read Also: How to Retrieve KRA PIN using ID Number Online Reset or Recovery a Lost KRA PIN Step-by-Step Guide to Reset Forgotten KRA PIN This is some basic, Certainly, here are the steps to recover a lost (Forgot my KRA PIN) KRA (Kenya Reven
Read more