One thing I have come to appreciate about life is that whatever challenges or issues we go through, they are not for us but for others. I have also appreciated that many people like taking advantage of your ignorance and therefore information is power and I hope that you can learn from me and avoid same mistakes that I did.
Yesterday, I had the privilege of attending free KRA Seminar at 5th Floor Times Tower. The seminar runs from 8.30a.m. to 1p.m.. They educate the common taxpayer be it self employed, company or even non-residents on tax obligations and so when the KRA officers visit you, you know your rights and obligations. The seminars are held monthly and the schedule is normally on the KRA Website.If you can please attend especially if you starting or are in business.
When we finished the seminar, I felt such relief because there are a few people who have been making my life miserable with threats of outrageous penalties that were giving me nightmares. Please note when you register your company, please visit a KRA office or Times Tower Ground floor to know your tax obligations like does your company/business make Kshs 500,000 or less, or between Kshs 500,000 to 5million? There are taxes for these categories. Are you selling or buying vatable goods? Then despite you making less than 5million per year it is an advantage to pay VAT because you can claim VAT for the goods and services you purchased.
Oh and if you choose to enrol for VAT, kindly have or budget for an ETR Machine soonest..their prices and sizes range with the size and nature of your business.. Do you have an employee? Or is the director earning a salary..then consider PAYE even if the person is not paid you need to do NIL returns failure of which there are penalities for late submission. Are you a consultant? Maybe you need to know about withholding tax.
For those who are paying interest on mortgage, or contribute to NSSF, or have education for over 10years and health policies, or contribute to retirement benefits schemes..then you may have some tax reliefs that you are entitled to as the governement is encouraging people to save for the future.
Most of all, for those who may be threatened with big penalties due to ignorance, you can always write a letter to the commissioner stating that you wer ignorant but now that you know better are seeking to be pardoned and request waiver of the penalties. However be sure to pay the amount of tax due for that month/period as you request to be pardoned. This is one thing those guys who visit your office won't tell you. It made me feel so so much better. One more thing, taxes due are always from the date you registered for that particular tax on the online portal..so let no one cheat you that it is back dated from when you registered your company unless you did both at the same time.
I am no tax expert, far from it, just an innocent Kenyan trying to make a living and what you to be safe. I now feel empowered. I learned all the above yesterday and you can get to know more from KRA website http://www.kra.go.ke/.
Yesterday, I had the privilege of attending free KRA Seminar at 5th Floor Times Tower. The seminar runs from 8.30a.m. to 1p.m.. They educate the common taxpayer be it self employed, company or even non-residents on tax obligations and so when the KRA officers visit you, you know your rights and obligations. The seminars are held monthly and the schedule is normally on the KRA Website.If you can please attend especially if you starting or are in business.
When we finished the seminar, I felt such relief because there are a few people who have been making my life miserable with threats of outrageous penalties that were giving me nightmares. Please note when you register your company, please visit a KRA office or Times Tower Ground floor to know your tax obligations like does your company/business make Kshs 500,000 or less, or between Kshs 500,000 to 5million? There are taxes for these categories. Are you selling or buying vatable goods? Then despite you making less than 5million per year it is an advantage to pay VAT because you can claim VAT for the goods and services you purchased.
Oh and if you choose to enrol for VAT, kindly have or budget for an ETR Machine soonest..their prices and sizes range with the size and nature of your business.. Do you have an employee? Or is the director earning a salary..then consider PAYE even if the person is not paid you need to do NIL returns failure of which there are penalities for late submission. Are you a consultant? Maybe you need to know about withholding tax.
For those who are paying interest on mortgage, or contribute to NSSF, or have education for over 10years and health policies, or contribute to retirement benefits schemes..then you may have some tax reliefs that you are entitled to as the governement is encouraging people to save for the future.
Most of all, for those who may be threatened with big penalties due to ignorance, you can always write a letter to the commissioner stating that you wer ignorant but now that you know better are seeking to be pardoned and request waiver of the penalties. However be sure to pay the amount of tax due for that month/period as you request to be pardoned. This is one thing those guys who visit your office won't tell you. It made me feel so so much better. One more thing, taxes due are always from the date you registered for that particular tax on the online portal..so let no one cheat you that it is back dated from when you registered your company unless you did both at the same time.
I am no tax expert, far from it, just an innocent Kenyan trying to make a living and what you to be safe. I now feel empowered. I learned all the above yesterday and you can get to know more from KRA website http://www.kra.go.ke/.
Comments
Like you mentioned, it helps to attend the KRA clinics. Makes it a lot easier when one has some assurance that they're doing the right thing.
So, yes, let's find the information. It helps, especially when it's from the right sources...