WIDENING TAX BRACKET

Taxman now eyes online businesses for revenue

In Summary

• The corporation is set to raise revenue to GDP ratio from current 18.3 per cent in 2017/18 to 19.2 per cent in 2020/21.

• Those whose turnover is below Sh5 million should pay presumptive tax.

Kenya Revenue Authority advises citizens that unless income or supply is expressly exempt in the law, appropriate taxes should be paid.
Kenya Revenue Authority advises citizens that unless income or supply is expressly exempt in the law, appropriate taxes should be paid.
Image: FILE

Business people transacting goods and services on online platforms have been making profits yet they have been evading tax.

Kenya Revenue Authority (KRA) advises citizens that unless income or supply is expressly exempt in the law, appropriate taxes should be paid.

“We would like to remind taxpayers that the self-assessment regime requires them to file and pay taxes which may include; VAT, Excise Duty, Witholding tax, PAYE, Corporate taxes and any other tax obligation required under the business,” the corporation said in a statement.

 
 

“Taxpayers whose annual taxable turnover is Sh5 million and above should register for VAT obligation and charge tax, while those whose turnover is below Sh5 million should pay presumptive tax,” the agency advised.

"The Authority therefore calls all taxpayers engaged in online trading in goods and services are invited for a sensitisation forum on May 17, 2019 at Hilton Hotel," concluded the announcement, on the taxman's website.

This comes as the corporation is set to raise revenue to GDP ratio from current 18.3 per cent in 2017/18 to 19.2 per cent in 2020/21.

In its seventh corporate plan from 2018-2021 , one of the key strategies is tax base expansion aimed at raising the number of active taxpayers from 3.94 million