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.

Taxpayers are required to update their iPage on first log in to iTax.

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.

One is required to fill in the mandatory fields especially under basic information then submit the data so as to update the taxpayers information with KRA.

This happens for new PINs that have not been migrated to iTax.

The taxpayer is required to send this PIN to KRA for migration through;

Email Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke

Or;

Call 020 2390919 and 020 2391099 and 0771628105

Or;

Visit the nearest KRA office.

No. PIN certificate is sufficient.

What the taxpayer needs to do if they start dealing in vat-able business is to add VAT obligation on the PIN.

The taxpayer is required to send this PIN to KRA for data correction through;

Email Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke

Or;

Call 020 2390919 and 020 2391099 and 0771628105

Or;

Visit the nearest KRA office.

This happens when there is poor internet connectivity.

Sorry, but be patient and keep trying.

The taxpayer is required to send this PIN to KRA for data correction through:

Email Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke

Or;

Call 020 2390919 and 020 2391099 and 0771628105

Or;

Visit the nearest KRA office.

The taxpayer is required to send this PIN to KRA for data correction through:

Email Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke

Or;

Call 020 2390919 and 020 2391099 and 0771628105

Or;

Visit the nearest KRA office.

Currently the Income Tax Act does not offer a preferential tax regime for newly listed companies. These provisions were deleted effective 25th April, 2020 by The Tax Laws (Amendment) Act, 2020.

Yes.

An Export Processing Zone (EPZ) enterprise which does not engage in any commercial activities is exempted from paying any corporation tax for a period of 10 years starting with the year in which production, sales or receipts relating to the activities for which that enterprise has been licensed as an EPZ enterprise commence.

 After the 10th year, the corporation rate of tax will be 25% for the period of 10 years commencing immediately thereafter.

“Commercial activities” referred to above, include trading in, breaking bulk, grading, repacking, or relabelling of goods and industrial raw materials

Though exempt from corporation tax, there following are tax obligations that the EPZ enterprise would be liable for during the period in which it is exempt from corporation tax:

1. The enterprise shall be deemed to be a non-resident subject to a non-resident rate of withholding tax on payments made to the enterprise. Where such payments are made by a person who is not an EPZ enterprise, the tax shall be final tax; and
2. Payments by an export processing zone enterprise to any person other than a resident person shall be deemed to be exempted from tax.
3. The employees and directors, other than non-residents, of an export processing zone enterprise shall be liable to tax on their employment income and the EPZ enterprise employing them will be required to deduct and remit tax from their employment income.

It is important to note that for the period an EPZ enterprise is exempt, it will still be required to submit an annual return of income.

In the event of failure to submit a return or late submission of a return, the enterprise will be liable to a penalty of two thousand shillings per day for as long as the return remains unfiled. This penalty shall for purposes of provisions relating to the deduction and recovery of the tax be deemed to be tax.

No.

Partnerships do not pay corporation tax. Partnership income is declared through the partnership return.

The table income is distributed to the individual partners as per the agreed profit sharing ratios.

The share of profit then forms part of each individual's partner’s income. It will be added to any other income and the total income taxed accordingly.

No.

Self-employed people and Sole proprietorships are not subject to corporation tax.

They are required to declare their total income of the year in the Individual Income Tax Return and pay Income Tax.

When filing your Corporation Tax Return (also referred to as Income Tax - Company Return) you are only allowed to claim expenses that have been wholly and exclusively incurred in the production of your income as guided in section 15 and 16 of the Income Tax Act, Cap. 470.

View the below table for the current individual tax bands and rates (Effective date: 1st January, 2021)

The applicable monthly personal relief is Kshs. 2,400 per month or Kshs 28,800 per annum.

No.

"Casual employment" in this case refers to employment that is under one month.

Regular part-time employees and regular casual employment, where the employees are employed casually but regularly, are not considered to be casual employees.

Yes.

Where an employee enjoys a benefit, advantage or facility of whatsoever nature in connection with employment or services rendered; the value of such benefit should be included in the employee's earnings and charged to tax.

Sometimes employers provide loans to their employees and charge an interest lower than the prescribed rate. This becomes a benefit to the employee, for which the employer needs to file and pay Fringe Benefit Tax.

The difference between the prescribed rate and the employer's loan rate is chargeable to tax, on the employee. The taxable value of fringe benefit tax is the difference between the market interest rate and the actual interest paid on the loan. 

Example:

Ken gets a loan of Kshs. 3,000,000

Loan amount:  Kshs.3, 000,000

Interest charged: 3%

Market Interest rate for the month: 9%

Fringe Benefit is (9% - 3% = 6%) = Kshs.3, 000,000 x 6% =180,000 p.a   

i.e.   Kshs. 15,000   per   month.

Fringe   Benefit   tax   payable   by   employer   is   Kshs.   15,000   x   30%

  =  Kshs. 4,500/-  for the month

A company is allowed to carry forward its losses that will be offset against future taxable income.

However, losses cannot be transferred to a different entity.

Companies in the extractive industry e.g. mining, oil and gas industries, are only allowed to carry their losses forward for a period of three years, from the year of income in which the loss arose.