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Advice on Tax Compliance certificate
Rank: Member Joined: 1/6/2009 Posts: 98
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lexx wrote:Does filing for returns apply to Registered Business names as well.
Is it only limited to corporates or it as well includes partnership businesses. I think Business Names and Partnerships are treated as individuals. You file the income under yourself.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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lexx wrote:Does filing for returns apply to Registered Business names as well.
Is it only limited to corporates or it as well includes partnership businesses. Sole proprietorships - the individual owner files returns using his/her own individual PIN. You mus file monthly VAT returns if registered for VAT. Partnerships - must get a PIN for the business even if it not a limited co. then file returns under that PIN Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: New-farer Joined: 1/28/2010 Posts: 14
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sole traders trading using business names whose income is below 5m p.a. are not required to register for VAT. It does not matter whether their products and/or services are vatable. Where the products and/or services are vat exempt, then registration for VAT is not necessary even if the sales are hundreds of millions of shillings p.a. e.g. sale of cereals - only tax payable is income tax.
A sole trader should register for income tax and s/he should keep proper books of accounts to determine the profits; where the graduated scale will be used to tax the profits. If the business profit does not exceed sh.11,135/- then no tax is payable.
where the tax is sh.40,000 p.a. and more, then installment tax is payable.
In the scenario where income is over 5m p.a. and products/services are vatable, the register for VAT and charge and pay vat by 20th the next month. In the accounts reduce any VAT paid for any purchases from the vat charged to your clients.
more to follow...
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Rank: Member Joined: 4/7/2011 Posts: 105
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waziwazi wrote:sole traders trading using business names whose income is below 5m p.a. are not required to register for VAT. It does not matter whether their products and/or services are vatable. Where the products and/or services are vat exempt, then registration for VAT is not necessary even if the sales are hundreds of millions of shillings p.a. e.g. sale of cereals - only tax payable is income tax.
A sole trader should register for income tax and s/he should keep proper books of accounts to determine the profits; where the graduated scale will be used to tax the profits. If the business profit does not exceed sh.11,135/- then no tax is payable.
where the tax is sh.40,000 p.a. and more, then installment tax is payable.
In the scenario where income is over 5m p.a. and products/services are vatable, the register for VAT and charge and pay vat by 20th the next month. In the accounts reduce any VAT paid for any purchases from the vat charged to your clients.
more to follow...
Thanks for the info. I am a sole proprietor and employed as well (so i file returns) now i need a tax compliance. Please explain what i need to do.
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Rank: New-farer Joined: 1/28/2010 Posts: 14
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@Zenge.
Your employer should remit PAYE tax on your behald na hapo hakuna shida. I want to assume that you have reached the 30% thresh-hold.
I further want to assume that you are under the 5m p.a. turnover level.
Therefore, what you should pay is income tax and as the name suggests this is tax from your business income. Being employed and having reached the 30% graduated tax thresh-hold, your business profits will all be taxed at 30%. Keep proper books of accounts and reduce all business expenses from the sales to determine the net profit. Note that unlike corporation, societies and other statutory bodies, your accounts do not need to be audited.
Again remember that if total profit p.a. is 40k and over, you are subject to installment tax.
File the annual tax form and remit it to KRA by 30 June the following year. In this form you will specify the two incomes i.e. employment income and business income.
I dont know your bizna but there should be with-holding tax if your invoice is sh.24k per month from a client. The client will deduct 5% and remit the tax to KRA and give you the tax certificate. With-holding tax will reduce your final tax as you net-off the two.
Hope this helps. Finer details should be given by your or any other accountant.
If you have complied with the tax laws, application for tax compliance form is a straight forward matter. It becomes complicated since the taxman will investigate you compliance through your pin at the time of application of the compliance certificate.
Further hope that my assumptions are correct since i don't have details of your bizna.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Zenge wrote:waziwazi wrote:sole traders trading using business names whose income is below 5m p.a. are not required to register for VAT. It does not matter whether their products and/or services are vatable. Where the products and/or services are vat exempt, then registration for VAT is not necessary even if the sales are hundreds of millions of shillings p.a. e.g. sale of cereals - only tax payable is income tax.
A sole trader should register for income tax and s/he should keep proper books of accounts to determine the profits; where the graduated scale will be used to tax the profits. If the business profit does not exceed sh.11,135/- then no tax is payable.
where the tax is sh.40,000 p.a. and more, then installment tax is payable.
In the scenario where income is over 5m p.a. and products/services are vatable, the register for VAT and charge and pay vat by 20th the next month. In the accounts reduce any VAT paid for any purchases from the vat charged to your clients.
more to follow...
Thanks for the info. I am a sole proprietor and employed as well (so i file returns) now i need a tax compliance. Please explain what i need to do. @Zenge; Hold on for a second. The info from @waziwazi is not entirely accurate. There are some categories of services where it is mandatory to register for VAT even if the turnover doesn't reach the sh5 mil limit. Example - most professional services, including accountancy, legal, training etc Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Hello Joined: 1/10/2011 Posts: 7 Location: nairobi
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Quite informative post i would like to ask the procedure of acquiring an individual tax status/compliance as well as the procedure of filling rental income The greatest wealth is health.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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mazuri wrote:Quite informative post i would like to ask the procedure of acquiring an individual tax status/compliance as well as the procedure of filling rental income Start here: http://www.kra.go.ke/KRA...e=loadOnlineServicesPageNothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Member Joined: 11/8/2012 Posts: 257
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kachero wrote:
Advice on KRA VAT RETURNS-Tax Compliance certificate
Hi good people.I'm seeking your advice on matters that i got with KRA. Around two years ago, we incorporated a limited company and then five months down the line we registered for a company PIN and VAT Tax obligation. The company has not been in operation (in the real sense, we were meant to look for tenders supply deals, which we are yet to clinch) but fortnight ago things have started to look bright.Now the dilemma is in acquiring the TAX COMPLIANCE CERTIFICATE!
1.Now that the company has not filed the zero returns (No any business made so far), is it possible to obtain the TCC without the 10K per month fine since registration?
2.Is there a way that a limited company can denounce the VAT obligation(By the way-filling was done thru a cyber guy who assumed we needed or rather every company must do VAT) and still get the TCC?
3.Can we file the zero returns for the last 15 months, Now?
4.Any other information will be highly appreciated.
@ Kachero did you ever succeed.I find myself in the same predicament as yourself the taxman claims I owe him for a company which has been dormant.
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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Mjasirii wrote:kachero wrote:
Advice on KRA VAT RETURNS-Tax Compliance certificate
Hi good people.I'm seeking your advice on matters that i got with KRA. Around two years ago, we incorporated a limited company and then five months down the line we registered for a company PIN and VAT Tax obligation. The company has not been in operation (in the real sense, we were meant to look for tenders supply deals, which we are yet to clinch) but fortnight ago things have started to look bright.Now the dilemma is in acquiring the TAX COMPLIANCE CERTIFICATE!
1.Now that the company has not filed the zero returns (No any business made so far), is it possible to obtain the TCC without the 10K per month fine since registration?
2.Is there a way that a limited company can denounce the VAT obligation(By the way-filling was done thru a cyber guy who assumed we needed or rather every company must do VAT) and still get the TCC?
3.Can we file the zero returns for the last 15 months, Now?
4.Any other information will be highly appreciated.
@ Kachero did you ever succeed.I find myself in the same predicament as yourself the taxman claims I owe him for a company which has been dormant. I have a broker at Times towers who can sort you out for a fee and you get a genuine verifiable tax compliance and remember to Mpesa me my commission of 15k.Weka email I sort you out.
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Rank: Member Joined: 11/8/2012 Posts: 257
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mawinder wrote:Mjasirii wrote:kachero wrote:
Advice on KRA VAT RETURNS-Tax Compliance certificate
Hi good people.I'm seeking your advice on matters that i got with KRA. Around two years ago, we incorporated a limited company and then five months down the line we registered for a company PIN and VAT Tax obligation. The company has not been in operation (in the real sense, we were meant to look for tenders supply deals, which we are yet to clinch) but fortnight ago things have started to look bright.Now the dilemma is in acquiring the TAX COMPLIANCE CERTIFICATE!
1.Now that the company has not filed the zero returns (No any business made so far), is it possible to obtain the TCC without the 10K per month fine since registration?
2.Is there a way that a limited company can denounce the VAT obligation(By the way-filling was done thru a cyber guy who assumed we needed or rather every company must do VAT) and still get the TCC?
3.Can we file the zero returns for the last 15 months, Now?
4.Any other information will be highly appreciated.
@ Kachero did you ever succeed.I find myself in the same predicament as yourself the taxman claims I owe him for a company which has been dormant. I have a broker at Times towers who can sort you out for a fee and you get a genuine verifiable tax compliance and remember to Mpesa me my commission of 15k.Weka email I sort you out. mjasirii@gmail.com
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Rank: Elder Joined: 6/19/2008 Posts: 4,268
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Mjasirii wrote:mawinder wrote:Mjasirii wrote:kachero wrote:
Advice on KRA VAT RETURNS-Tax Compliance certificate
Hi good people.I'm seeking your advice on matters that i got with KRA. Around two years ago, we incorporated a limited company and then five months down the line we registered for a company PIN and VAT Tax obligation. The company has not been in operation (in the real sense, we were meant to look for tenders supply deals, which we are yet to clinch) but fortnight ago things have started to look bright.Now the dilemma is in acquiring the TAX COMPLIANCE CERTIFICATE!
1.Now that the company has not filed the zero returns (No any business made so far), is it possible to obtain the TCC without the 10K per month fine since registration?
2.Is there a way that a limited company can denounce the VAT obligation(By the way-filling was done thru a cyber guy who assumed we needed or rather every company must do VAT) and still get the TCC?
3.Can we file the zero returns for the last 15 months, Now?
4.Any other information will be highly appreciated.
@ Kachero did you ever succeed.I find myself in the same predicament as yourself the taxman claims I owe him for a company which has been dormant. I have a broker at Times towers who can sort you out for a fee and you get a genuine verifiable tax compliance and remember to Mpesa me my commission of 15k.Weka email I sort you out. mjasirii@gmail.com did you get help? i need to know if to contact Mawinder
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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Wendz wrote:Mjasirii wrote:mawinder wrote:Mjasirii wrote:kachero wrote:
Advice on KRA VAT RETURNS-Tax Compliance certificate
Hi good people.I'm seeking your advice on matters that i got with KRA. Around two years ago, we incorporated a limited company and then five months down the line we registered for a company PIN and VAT Tax obligation. The company has not been in operation (in the real sense, we were meant to look for tenders supply deals, which we are yet to clinch) but fortnight ago things have started to look bright.Now the dilemma is in acquiring the TAX COMPLIANCE CERTIFICATE!
1.Now that the company has not filed the zero returns (No any business made so far), is it possible to obtain the TCC without the 10K per month fine since registration?
2.Is there a way that a limited company can denounce the VAT obligation(By the way-filling was done thru a cyber guy who assumed we needed or rather every company must do VAT) and still get the TCC?
3.Can we file the zero returns for the last 15 months, Now?
4.Any other information will be highly appreciated.
@ Kachero did you ever succeed.I find myself in the same predicament as yourself the taxman claims I owe him for a company which has been dormant. I have a broker at Times towers who can sort you out for a fee and you get a genuine verifiable tax compliance and remember to Mpesa me my commission of 15k.Weka email I sort you out. mjasirii@gmail.com did you get help? i need to know if to contact Mawinder Let him answer,even though with the new itax system it is complicated but my KRA insider can manage a genuine verifiable tax compliance certificate.Remember to mpesa my commission of 22k
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Rank: Member Joined: 11/8/2012 Posts: 257
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mawinder wrote:Wendz wrote:Mjasirii wrote:mawinder wrote:Mjasirii wrote:kachero wrote:
Advice on KRA VAT RETURNS-Tax Compliance certificate
Hi good people.I'm seeking your advice on matters that i got with KRA. Around two years ago, we incorporated a limited company and then five months down the line we registered for a company PIN and VAT Tax obligation. The company has not been in operation (in the real sense, we were meant to look for tenders supply deals, which we are yet to clinch) but fortnight ago things have started to look bright.Now the dilemma is in acquiring the TAX COMPLIANCE CERTIFICATE!
1.Now that the company has not filed the zero returns (No any business made so far), is it possible to obtain the TCC without the 10K per month fine since registration?
2.Is there a way that a limited company can denounce the VAT obligation(By the way-filling was done thru a cyber guy who assumed we needed or rather every company must do VAT) and still get the TCC?
3.Can we file the zero returns for the last 15 months, Now?
4.Any other information will be highly appreciated.
@ Kachero did you ever succeed.I find myself in the same predicament as yourself the taxman claims I owe him for a company which has been dormant. I have a broker at Times towers who can sort you out for a fee and you get a genuine verifiable tax compliance and remember to Mpesa me my commission of 15k.Weka email I sort you out. mjasirii@gmail.com did you get help? i need to know if to contact Mawinder Let him answer,even though with the new itax system it is complicated but my KRA insider can manage a genuine verifiable tax compliance certificate.Remember to mpesa my commission of 22k @ Wendz I did get assistance however from different quarters I believe @ Mawinder's contacts will be helpful as well. As mentioned above with introduction of itax things are becoming elepahnt in that building.
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Rank: Member Joined: 1/9/2009 Posts: 169 Location: Syokimau
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@Mjasiri @Mawinder kindly inbox me at andyombongi@yahoo.com same predicament here. Thanks
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Rank: New-farer Joined: 5/20/2010 Posts: 69
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I have just got my PIN certificate and its a limited company. There has been no business so far and I am aware of the 10k penalty. Can someone please direct me, step by step on how to file zero returns on this new itax system?
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Rank: Member Joined: 3/22/2008 Posts: 88
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sl8r wrote:I have just got my PIN certificate and its a limited company. There has been no business so far and I am aware of the 10k penalty. Can someone please direct me, step by step on how to file zero returns on this new itax system? You can attend KRA seminars, ongoing now. The follwoing is the up country program. In Nairobi, Seminars are conducted every day at times tower. Day Date Activity Time 1. 17th – 28th November, 2014 Registration and Updating of (Individual, Non-Residents, and Companies). Data Correction and Uploading of Certificates on iTax. iPage Over-view, PRNs, WHT, Ledger,Amendments. 09.00 AM - 10:30 AM 11:00 AM - 12:30 PM 02:00 PM - 04:30 PM 2. 1st – 11th December, 2014 Filing of Returns on iTax 09.00 AM - 10:30 AM 11:00 AM - 12:30 PM 02:00 PM - 04:30 PM Venues for the Training: Town VENUE Embu Slopes Villa Hotel on Embu/Meru Rd Next to ACK Cathedral Garissa Ainul Aqmar Hotel Meru Paramount Hotel Machakos Le Technisch Restaurant at Machakos University College Nyeri KRA Nyeri Office at Premier Plaza Thika The coconut grill Hotel on Kenyatta Highway, Off Garissa Road This will be hands on training and it’s advisable for one to bring a laptop. Please note that the training is free. Kindly register for the training by logging onto www.kra.go.ke and click on Online Services on the left hand side to access the registration page.
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