Taxation & Tax Compliance
There is never a convenient time for two things in life death and taxes. Both are inevitable. Planning is the key to successfully and legally reducing your tax liability. Our team of professional tax advisers are eager to help you understand your tax requirements and implications of any actions taken. Tax compliance can be a difficult administrative process with often under or overpayments which have consequences. Our experts will walk with you and ensure you are compliant in an efficient and cost-effective way. Our Tax services include:
• Value Added Tax (VAT) :
Value Added Tax (VAT) is a tax on consumer expenditure. It is imposed on consumption of taxable goods and services supplied or imported into Kenya then remit it to the Kenya Revenue Authority (KRA).
• Withholding Tax :
Withholding taxes in Kenya are deducted at source from the following sources of income: Interest, dividends, royalties, management or professional fees, training, commissions, pension or retirement annuity, rent, appearance or performance fees for entertaining, sporting or diverting an audience.
• PAYE :
Pay as you Earn in Kenya refers to a taxation principle whereby employed persons in Kenya pay income tax. The employer deducts a certain amount of tax from his / her employee’s salary or wages on each payday then remit the tax to the Authority. This relieves the employee from paying taxes at the end of the year.
• Residential Rental Income Tax (MRI) :
This also falls under the income tax. The landlords pay residential rental income tax under a special category of tax specific to their needs. The taxpayers are not allowed any expenses or capital expenditure. The tax rate under this special category is 10 % of monthly rental income. The rental tax is based on the gross rental income collection per month and is payable by 20th of the following month.
• Advance Tax in Kenya :
Advance tax is applicable to Matatus and other commercial Vehicles. Any advance tax paid in Kenya becomes credit available for offset against the corporate tax liability.
• Corporation Tax :
Corporation tax in Kenya is a form of income tax that is levied on companies and branches. Resident companies are taxable at a rate of 30% while non – resident companies and branches are taxable at a rate of 37.5%. Corporate tax is paid in instalments.