Taxation and Tax Compliance
Home / Taxation and Tax Compliance
Our team is always prepared to help you determine the kind of tax obligation that is
appropriate for your business.
Corporation Tax – Corporation tax in Kenya is a form of income tax that is levied on companies and branches
PAYE – Pay as you Earn in Kenya is a method of collecting tax at source from individuals in gainful employment. The employer deducts a certain amount of tax from his / her employee’s salary or wages on each payday then remits the tax to the authority. This relieves the employee from paying taxes at the end of the year and shifts the responsibility to the employers.
Withholding Tax – Withholding taxes in Kenya are deducted at source from the following sources of income: Interest, dividends, royalties, the management or professional fees, training, commissions,
pension or retirement annuity, rent, appearance, or performance fees for entertaining, sporting, or diverting an audience.
Digital tax – The digital services tax rate is 1.5% of the gross transaction value. The gross transaction value is the payment received as consideration for the digital service. In the context of a digital marketplace provider, the transaction value is the commission or fee paid for the use of the platform.
Value Added Tax (VAT) – VAT is a tax on consumer expenditure introduced in Kenya in January 1990 to replace Sales Tax, which had been in operation since 1973. VAT is levied on consumption of taxable goods and services supplied or imported into Kenya and is collected by registered persons at designated points who then remit it to the KRA.
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.
Residential Rental Income Tax (MRI) – 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. It does not matter whether the taxpayers are individuals, corporate organizations, male, female, religious organizations etc. 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.
Get Exceptional Service For Growth
“Auditing needs to support clients in more ways than one. To start with, it should propel them to achieve their business objectives and goals using their financial & management insights gained over a period of time.”
~ CPA James Kimeu Nthiwa, Managing Partner
Advisory | Share Skills
We use our skills gained over a period of time to help your work to be smarter, quicker & focused.
Auditing & Assurance
The capital markets & investors use the information provided by us. We know our onus of responsibility!
Transparency | a keyword
Tax transparency & responsibility requires each of us to be accurate in the disclosure of statements.
Salute | the Enterprise
We salute your spirit of enterprise! Our passion for supporting you propels us forward.
Audit and Assurance
Taxation and Tax Compliance
Contact us
PO. Box 31831 – 00600 Nairobi
Phone: +254 726 143 955
Email: james@jameskimeuauditors.co.ke