This is a form of tax that is paid by an individual or non-individual tax payer that is not fully covered under PAYE and is remitted periodically. It is paid by a tax payer whose annual tax liability is estimated to exceed Kes. 40,000.
A statutory deduction is a mandatory deduction that an employer takes out of an employees’ salary. This is mandatory in Kenya, and as an employer you are required to remit the calculated amount to the relevant authority.
In an effort by the government to tame rogue entities, betting firms will now be required to make real-time remittances to KRA. This is after a pilot project to link the tax system with the betting sector was successfully implemented by KRA.
The NSSF Act 2013 whose enactment was done in 2013 was to come into effect in 2014, however, its implementation faced a massive opposition from labor unions who sort the advisory of the court to bar its implementation.
Filing tax returns in Kenya is a mandatory obligation for every registered taxpayer. Section 52B of the Income Tax Act stipulates that income tax accrued in or was derived from Kenya shall be subjected to income tax, regardless of whether an individual is resident or non-resident.
Kenya, like most modern economies, is making use of technology to better streamline its VAT administration. In line with this, Kenya Revenue Authority (KRA) has introduced an electronic Tax Invoice Management System (TIMS) to standardize, validate, and transmit invoices on real time or near real time basis to KRA.