In Kenya, businesses are required to pay several types of taxes, which include:
- Corporate Income Tax: This is a tax charged on the profits of a company, and it is based on the company’s income. The current rate of corporate income tax in Kenya is 25%.
- Value Added Tax (VAT): This is a tax charged on the supply of goods and services in Kenya. The current VAT rate in Kenya is 16%.
- Withholding Tax: This is a tax deducted at source on payments made to non-resident individuals or companies. The rate of withholding tax varies depending on the nature of the payment and the country of residence of the recipient.
- Pay As You Earn (PAYE): This is a tax deducted at source on the income of employees. The rate of PAYE varies depending on the income level of the employee.
- Excise Duty: This is a tax charged on the production and sale of certain goods such as alcohol, tobacco, and petroleum products. The rate of excise duty varies depending on the nature of the goods.
- Import Duty: This is a tax charged on goods imported into Kenya. The rate of import duty varies depending on the nature of the goods and the country of origin.
- Business Permit: This is a tax paid by businesses to the county government for the privilege of operating in a particular county. The rate of business permit varies depending on the size and nature of the business.
It is important for businesses to comply with all tax regulations in Kenya to avoid penalties and legal issues. Businesses can seek the services of tax consultants and accountants to ensure they are compliant with all tax requirements.
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