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Elizabeth Meyo - Commissioner for Domestic Taxes at KRA www.businesstoday.co.ke
Commissioner for Domestic Taxes at KRA Elizabeth Meyo. The deadline for Turnover Tax (TOT) is Thursday 20th February, 2020. [Photo/KRA]
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The due date for Turnover Tax (TOT) is Thursday 20th February 2020.

Payment of Turnover Tax (TOT) is due this Thursday 20th February 2020 and all Micro and Small Enterprises (MSEs) should register, file and pay the January 2020 tax returns for the Turnover Tax (TOT).

The tax rate for TOT is 3% on the gross sales/turnover and is a final tax. TOT is filed and paid on a monthly basis on or before 20th of the following month.

Read: Getting a Tax Compliance Certificate Just Got Easier

The Government of Kenya is committed to enhancing simplification of taxes to facilitate taxpayers to meet their obligations and TOT is part of this initiative. The TOT obligation is a simplified tax regime for Micro and Small Enterprises (MSEs). This obligation allows MSEs to pay taxes through simplified processes. Under this simplified regime, taxpayers are not required to prepare complex account records.

Eligible taxpayers are only required to keep a daily gross sales record. KRA has been consulting with concerned stakeholders to facilitate them to register and pay the taxes due.

KRA has also simplified the registration, filing and payment process of TOT on the iTax platform. The iTax system has always made it easy for taxpayers to access KRA services. This has led to notable success in filing returns, remitting payments, applying tax refunds, lodging tax objections, application of tax waivers and requesting tax compliance certificates.

Also see: Hope for Kenya’s Small Businesses and The Role of Technology

The TOT tax does not apply to persons; registered for VAT, with business income of Kshs 5,000,000 and above, Employment Income, Rental Income, Limited Liability Companies, Management and Professional Services among others. Eligible taxpayers are advised to log onto iTax, add the TOT obligation, file the monthly returns and make payment.

TOT is part of KRA’s strategic initiatives to expand the tax base by ensuring that all Kenyans pay their fair share of taxes.

KRA assures taxpayers of its support and facilitation to ensure that they register, file and pay their Turnover Tax before the set deadline. Taxpayers are also advised to visit the nearest KRA office for any assistance required or call the Call Centre on Tel: 020 4 999 999, 0711 099 999.

Read >> Questionably Wealthy Kenyans Hiding Ksh6 Trillion Abroad

Written by
ELIZABETH MEYO -

Elizabeth Meyo is the Commissioner for Domestic Taxes Department at the Kenya Revenue Authority (KRA).

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