Types of Taxes

PAYE (for employers only)

PAYE is a method of collecting tax at source from individuals in gainful employment, including workers of Religious Organizations and foreign missions working in Kenya.

Withholding Tax

This is a method whereby the payer of certain incomes is responsible for deducting tax at source from payments made and remitting the tax so deducted to the Authority. Withholding tax may or may not be a final tax.

Advance Tax

Tax paid in advance before a public service vehicle or commercial vehicle is licensed at the rates applicable.

Turnover Tax

Applicable to businesses whose turnover (income) does not exceed Kshs. 5 million during any year of income. It is paid every three calendar months and taxed at a rate of 3% on gross income.

Rental Income for Residential Property

It is payable by a resident person and applies to rental income that has accrued or been derived from Kenya for the use or occupation of residential property with rental income of Kshs. 10 million or below per annum.

The rate of tax shall be 10% on gross rent received and it is paid on a monthly basis

Installment Tax

Tax paid by both individuals and corporate taxpayers who have a tax liability of over Kshs. 40,000 payable for any year. This excludes individuals whose tax liability for a particular year is fully covered by PAYE.

Capital Gains Tax (CGT)

This is Income in respect of which tax is chargeable on a gain which accrues to a company or an individual.

Fringe Benefit Tax

Fringe benefit tax is payable by every employer in respect of a loan provided to an employee, director or their relatives at an interest rate lower than the market interest rate.

How to Pay Taxes

Initiating payments for taxes is always done on the iTax platform.

After filing the return online via iTax, generate a payment slip and present it at any of the appointed KRA banks to pay the due tax.

You can also pay via Mpesa.

Use the KRA Pay bill number 222222.

The Account Number is the Payment Registration number quoted at the top right corner of the generated payment slip.