The Kenya Revenue Authority (KRA) would like to reassure taxpayers of maximum support before and after the roll-out of presumptive tax set to be implemented on 1st January, 2019.
So far, KRA has conducted sensitization seminars around the country with a view to ensure that taxpayers who fall under this tax bracket transition from turnover tax to presumptive tax seamlessly.
Presumptive tax, which will be charged at 15 per of the business permit or trade licence fee, was introduced in the 2018/19 financial year budget statement to replace the current turnover tax.
The new tax will apply to small and medium enterprises whose annual turnover is less than Ksh5 million.
Businesses that offer management and professional services, incorporated companies as well as rental businesses are exempted from paying presumptive tax. Also exempted from this tax head are persons whose incomes are exempt from tax as stipulated in the First Schedule of the Income Tax Act. Such, however, should be backed by valid certificates of exemption.
Taxpayers shall be required to make payment for presumptive tax at the point of obtaining and making payment for business permits or trade licences or renewal of the same by the county governments.
Payment for presumptive tax shall be made on the iTax platform by generating a payment registration number which is payable through mobile money transfer or at any KRA partner bank. The due date for presumptive tax is the date payment for a business permit or trade licence is made.
It is important to note that taxpayers who shall be having turnover tax arrears when the presumptive tax takes effect shall still be required to clear the arrears.
To this end, KRA urges all the taxpayers under this tax bracket who may encounter any challenges to seek assistance through the KRA contact centre on 0711099999 or email@example.com. Taxpayers can also visit the nearest KRA office or a KRA desk at the nearest Huduma Centre.
Commissioner, Strategy, Innovation and Risk Management ? Dr. Mohamed Omar