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Presumptive tax: KRA issues new tax for small traders beginning 2019

Baba Hakeem by Baba Hakeem
9th July 2020
in Business
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In a bid to collect more taxes, the Kenya Revenue Authority (KRA) has issued a notice requiring all informal traders to pay a newly introduced tax, The presumptive tax by 1st January 2019, they will be required to do so before the county governments can renew their business permits. 

Failure to pay the presumptive tax will automatically lead to denial of a business permit by the County Governments. 

The Presumptive tax will be paid at a rate of 15 per cent of the business permit fee or licence payable.

Payments are to be made via iTax Platform. To do this the tax payer will  generate a payment registration number. They will then pay through M-Pesa Pay Bill number 572572 or any other partner bank. 

The introduction of the presumptive tax will ensure that businesses remit some of their earnings  to the government as many businesses neglect to pay taxes. 

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Editor | Ardent Photographer | Fledgling Copywriter | Shrewd Entrepreneur | Devout Man United Fan | Novice Blogger #workhorse #staywinning #carteblanche Baba.Hakeem@eldoretleo.com

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