Filming and photography equipment may be allowed into the country on a temporary basis upon clearance through the Customs Simba 2005 System. Such importation is not subject to Import Declaration Form (IDF). However, a security bond has to be furnished with the undertaking that the equipment will be exported within such period, not exceeding twelve months from the date of importation. A non-refundable deposit of 1% of the value of the goods or Ksh. 30,000, whichever is higher, is payable.

Motor vehicles over 8 years old are not allowed into Kenya as per the KS 1515:2000 quality standard by the Kenya Bureau of Standards. Kenya Customs enforces this requirement. This year, we are allowing vehicles manufactured in the year 2009 and thereafter.

The duty payable on the importation of a motor vehicle is as follows:

• Import Duty: 25% of the Customs Value (CIF) of the vehicle
• Excise Duty: 20% of the (CIF + Import Duty)
• VAT: 16% of the (CIF value + Import Duty + Excise Duty)
• Import Declaration Form (IDF): 2% of the CIF value
• Railway Development Levy (RDL): 1.5% of the CIF

CIF - This is the customs value of the vehicle i.e. the Cost, Insurance & Freight paid for the vehicle. The CIF value of the vehicle is also deduced from the Current Retail Selling Price (CRSP) of the vehicle.

For Kenyan residents travelling with a vehicle registered in Kenya, you will have two options:

•  Deposit your logbook with Customs at the point of exit or border and collect it upon re-entry into the country.
•  Alternatively, you could deposit your logbook with Customs - Motor Vehicle Valuation Section at Jomo Kenyatta International Airport.
  For foreigners, a carnet de passage may be obtained. This document is issued by the Automobile Association (AA) office in any country.

Presumptive Tax is a simplified tax regime for small and micro enterprises. The tax is applicable to a resident person with a turnover from business not exceeding Kshs. 5 million during a year of income. The tax is based on the value of single business permit or a trade license issued/renewed by County Government.

The rate is 15% of the single business permit or trading license fee paid or liable to be paid to a County Government.

Presumptive Tax, is charged at 15% of the single business permit or trade licence while Turnover Tax is charged at a rate of 3% of the gross sales. Unlike Turnover Tax whose payment is made monthly, Presumptive Tax is paid once a year at the point of acquiring or renewing a single business permit or trade licence. 

Turnover is the gross receipts from a business. For multiple businesses, Turnover is aggregated from all businesses of a person for which a single business permit or trading license is issued or liable to be issued by a county government.

It applies to a person who is issued or liable to be issued with a single business permit or trading license by the County Government. The total gross turnover from all the businesses of the person liable to pay presumptive tax should not exceed five million shillings during a year of income.

The taxpayer will be required to indicate PIN, the county, sub-county, ward, business number (single business licensing number), business name, turnover and amount of single business permit fee paid during the payment registration.

Turnover Tax aimed at tapping revenue from the vibrant and robust informal sector. Despite the vibrant growth in the sector, the revenue has been declining. The Turnover Tax has not achieved its intended objectives due to the profile of the sector hence leaving many taxpayers out of the tax net.

Presumptive Tax is therefore the most appropriate tool that will ensure that all taxpayers are brought onboard as well as enhance compliance.

A resident person whose gross turnover does not exceed Shs 5 million per year of income is liable to pay Presumptive tax. One is liable to pay Presumptive Tax if one is issued or liable to be issued with a single business permit or trade license.

Yes. The following businesses are exempt from payment of Presumptive Tax:

• Rental business
• Management and Professional services
• Income of incorporated companies

Income exempt from tax under the First Schedule of Income Tax Act and has a valid exemption certificate.

Presumptive Tax becomes due once a single business permit or trade license is acquired or renewed. That means that if a taxpayer acquires or renews a single business permit or trade license at a County Government office today, payment for Presumptive Tax automatically becomes due.

Presumptive Tax is 15% of the single business permit or trading licence fee. For example, if the Single Business Permit or trading license is Kshs. 2,000 then Presumptive Tax payable is Kshs. 300 (15% * Kshs. 2,000).

An eligible taxpayer is expected to log on to the iTax portal using their KRA PIN and password where they will be required to generate a payment slip or an electronic slip against which payment can be made either at any of KRA partner banks or through mobile money transfer (Paybill number is 572572). The account number where the amount is to be made is the Payment Registration Number (PRN) on the electronic slip generated on iTax.

Yes, like any other tax, a person who is liable to pay presumptive tax and who fails to pay the presumptive tax at the time of payment for the single business permit or the trade license or renewal of the same shall be liable to a late payment penalty of 5% and late payment interest of 1% per month.

It is correct that taxpayers will not be required to a file tax return for Presumptive Tax. However, they will be required to keep necessary records for determination and ascertainment of turnover.

In the event that the business is no longer operating in the subsequent year(s) of income, the taxpayer will still be required to comply with the tax laws of filing a tax return.

KRA is already in extensive consultations with the County Governments to ensure a successful implementation of the Presumptive Tax. KRA has also intensified public awareness through sensitization seminars as well as through various media platforms.