Is there such a thing as a LLC having only one director?Is a sole proprietor Co. also entitled to those WTA deductions?

You can declare some small profit so as not to spook KRA guys

If you register your car as a company car, you will be taxed for car benefit depending on cost/cc of the car on your personal pay(salary)

You may opt to deduct your house rent from company expenses. This would however mean you(individual, not company) get taxed for house benefit! Adjust for that as well

But buying assets and registering them under the company is definitely a good idea. Claiming wear and tear as well as running/repair costs is an advantage

Yeah 20k is deductible for tax purposes per month

The insurance thing doesn't help much. While if you are deducting pension the entire amount upto 20k is deductible before computing tax, for insurance the relief is only 15% of the premium you pay and is capped at 5000 bob.

For example you earn 50k, you listen to those 'financial advisors' from Britam/Jubilee/ICEA...

You buy those funny insurance plans where you pay 10k premium monthly
Taxable pay=50,000-(15%*10,000)-200(nssf)-1162(personal relief)

On the other hand, if you take a pension for 10k

Taxable pay=50,000-10,000(pension)-200(nssf)-1162(personal relief)

So avoid those insurance plans if the purpose is to make tax savings. They give you very little and you can lose all your money if you fail to contribute. The reason they always want to sell them to you is that's where they make money. There's almost no money in pension for insurance companies!

It will be interesting to see this happen. Sometimes they put a notice in the papers calling for proposals/submissions ahead of the budget. Has anyone seen this? Any contacts/email address to send submissions? I really want to lobby for this.

Withholding tax is tax deducted at the source.If you are a consultant,you wont get the full invoice amount.some amout will be deducted by the customer and remitted to KRA.He needs to get a WHT certificate from the customer to confirm that the amount deducted was for WHT and remiited to KRA.
2.Depends on how he has registered his business.Generally you want to separate the individual from the business.
3)For consultancy income the WHT is normally the final tax.If you have other sources of income,then graduated scale rate will be used to calculated the tax payable and then deduct the WHT since it has already been paid.
4If one has been out of employment,then they need to file zero returns to show this otherwise iko penalty.

NHIF ndio hiyo deduction pap

Business tax avoidance

Abstract Case:

A business has an annual turnover of kshs 5m and a profit of 2m. TOT of 3% takes out kshs 150k from the profit leaving kshs 1.85m.

Anticipating increase of revenue to kshs 7m and profit to kshs 2.8m. corporate tax will take 30% of profit (kshs 840,000).

My thoughts: If someone splits the biashara into two units so as to keep the biashara within TOT threshhold. This would mean the kshs 7m revenue would give a tax of Kshs 210,000 against a tax of about Kshs 840,000 under the corporate tax. A saving of about Kshs 630,000.

what do you think? workable?

As per the Companies Act (cap 486), an LLC can only have a minimum of 2 and maximum of 7 directions.

On the sole proprietorship question, Withholding tax is a form of Income Tax. As such, one is entitled to deductions. Check the list of deductions/ Incentives for individual taxpayers here.

With thresh-hold on TOT being raised to Kshs. 50m from Kshs. 5m on annual turnover, and with a tax reduction on turn-over rate of 1% from 3% previously- this is very attractive for SME's.

Could be the reason KRA/iTax making taxpayers wanting to migrate to this regime jump through hoops - mara you must be tax compliant, then you must have filed your returns for FY 2020, mara your application will be vetted by KRA before consideration is given to permit you to migrate to TOT etc.