Through a notice issued on 9th May 2019, the Kenya Revenue Authority (“KRA”) reminded businesses engaging in online trading and marketing to file their returns and pay taxes.
The KRA stated that the self-assessment regime on iTax requires online businesses to file and pay taxes which amongst others may include: Value Added Tax (VAT), Excise Duty, Withholding Tax, corporate taxes and PAYE.
The law requires businesses with an annual revenue of more than Kshs. 5,000,000 (approximately US$ 50,000) to register for and remit VAT while businesses that generate an annual revenue of less than Kshs. 5,000,000 are required to pay presumptive tax at the rate of fifteen per cent (15%) of the annual single business permit fee.
The KRA further invited all taxpayers engaged in online businesses to a sensitization forum on the 17th day of May 2019 from 8.30 a.m. to 11.00 a.m. at the Hilton Hotel Nairobi.
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