Deadline for turnover tax payment is February 20, says KRA
By Daisy Okanga | The payment of Turnover Tax (TOT) is due Thursday, February 20, and business owners with a turnover tax of over Ksh5 million have been advised to register before the deadline.
The eligible ones are required to keep a daily gross sales record of which KRA says has been consulting with concerned stakeholders to facilitate them to register and pay taxes due.
The turnover tax which is a final tax, will, however, not apply to persons or businesses registered for value-added tax, employment income, rental income, limited liability companies, management and professional services among others.
According to the taxman, the newly introduced tax will be due from all Micro and Small Medium Enterprises (MSMEs) at the rate of 3 percent on the business’ gross sales or turnover on a monthly basis on or before 20th of the subsequent month.
However, KRA has assured taxpayers of its support and facilitation to ensure they register, file and pay their TOT before the set deadline.
How to register for TOT
The Kenya revenue authority has advised eligible taxpayers to log onto i-tax, add the turnover tax obligation, file the monthly returns and make payment.
The turnover tax was reintroduced last month and forms part of KRA’S strategic initiatives to expand the tax base by ensuring that all Kenyans pay their fair share of taxes.