A DAY TO DUE DATE FOR TURNOVER TAX

Kenyans urged to pay their tax returns. PHOTO /CORRESPONDENT

A DAY TO DUE DATE FOR TURNOVER TAX

By Mercyline Omware

Payment of Turnover Tax (TOT) is due this

Thursday 20th February 2020 and all Micro and

Small Enterprises (MSEs) should register, file

and pay the January 2020 tax returns for the

Turnover Tax (TOT).

The tax rate for TOT is 3% on the gross sales/

turnover and is a final tax. TOT is filed and paid

on a monthly basis on or before 20th of the

following month.

The Government of Kenya is committed to

enhancing simplification of taxes to facilitate

taxpayers to meet their obligations and TOT is

part of this initiative.

The TOT obligation is a simplified tax regime

for Micro and Small Enterprises (MSEs). This

obligation allows MSEs to pay taxes through

simplified processes.

Under this simplified regime, taxpayers are not

required to prepare complex account records.

The eligible taxpayers are only required to keep

a daily gross sales record. KRA has been

consulting with concerned stakeholders to

facilitate them to register and pay the taxes

due.

KRA has also simplified the registration, filing

and payment process of TOT on the iTax

platform.

The iTax system has always made it easy for

taxpayers to access KRA services.

This has led to notable success in filing returns,

remitting payments, applying tax refunds,

lodging tax objections, application of tax

waivers and requesting tax compliance

certificates.

The TOT tax does not apply to persons;

registered for VAT, with business income of

Kshs 5,000,000 and above, Employment

Income, Rental Income, Limited Liability

Companies, Management and Professional

Services among others.

Eligible taxpayers are advised to log onto iTax,

add the TOT obligation, file the monthly returns

and make payment.

TOT is part of KRA’s strategic initiatives to

expand the tax base by ensuring that all

Kenyans pay their fair share of taxes.

KRA assures taxpayers of its support and

facilitation to ensure that they register, file and

pay their Turnover Tax before the set deadline.

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