Maximize Your Impact, Minimize Your Worries

Navigating taxes can feel complex, especially for Non-Governmental Organizations (NGOs) focused on making a difference. But don't worry! Understanding the tax landscape can actually boost your organization's impact. Let's unravel the mysteries together.

Good News: You Might Pay Fewer Taxes

Many NGOs in Kenya qualify for tax exemptions. That means more money to help the people you serve. But there are some rules:

• Focus on Your Mission: If you are doing good things like helping communities improve or protecting the environment, you are a likely tax-exempt candidate.
• Watch Out for Side Hustles: Earning money from businesses unrelated to your mission might mean paying taxes.

Get Registered for Tax Exemption

To claim those tax benefits, you need to be official:

• NGO Coordination Board: Prove you are a genuine NGO.
• Kenya Revenue Authority (KRA) Tax Exemption Certified: Get an Exemption Certificate after a period of operating in addition to your Personal Identification Number (PIN) to manage your taxes. 

Keep Your Books in Order

Good record-keeping is your best friend:

• Annual Returns: File them on time with the KRA and NGO Coordination Board.
• Receipts and Records: Keep track of every shilling you spend and earn.

Not All Greener Grass

While you might save on some taxes, there are exceptions:

• Business Income: Money from selling products or services unrelated to your mission might be taxed.
• Investment Income: Earnings from investments can also be taxable.

Get Expert Help

Tax rules can be tricky. Consider talking to a tax expert to make sure you are doing everything right and getting the most out of your tax situation.

Conclusion

Understanding taxes can be tough, but worth it. By knowing the rules and keeping organized, you can save money and focus on what matters most: your mission.

Remember: This is a general guide. Every NGO is different. For tailored advice, reach out:

1. Contact us for free tax consultation: See your KRA Account Manager at your Tax Service Office.
2. To a tax professional or visit the NGO Coordination Board.
3. For more information, KRA website; kra.go.ke.

By: Joyce Ogada