There has been a growth in the private security sector in Kenya. This has been…
In Kenya, KRA is mandated to collect taxes from employees, employers, businesses, corporates and many more.
KRA usually collect tax through several methods in which is divided into 5 categories;
1. PAYE: applies to employees through the employer; (please note you will need KRA PIN in order to run your PAYE).
According to Wikipedia, A pay-as-you-earn tax (PAYE) is a withholding tax on income payments to employees.
2. Withholding Tax: applies to Kenyans in receipt of certain incomes e.g. dividends, professional fees, interest
3. Advance Tax: applies to Kenyans whom have Public Service Vehicles (PSV e.g. Matatus) and Commercial Vehicles.
4. Installment Tax: applies to individuals and corporate bodies where:-
- The tax is not fully collected at source through PAYE,
- Individual’s final tax liability exceed Ksh. 40,000 for the year
5. Turnover Tax (TOT): this is usually paid by Taxpayers whom are registered for TOT at the rate of 3% on gross sales per year.
Image Courtesy of sowise.org