Why you need to have a tax agent?

Are you worried about your tax issues? Have you gotten a tax assessment and demand notice from KRA? Do you want to sleep well knowing that you are compliant with the tax requirements? If you want all this, it means it’s time you appointed a tax agent to help you in handling all your tax matters. An authorized tax agent is a person who has been certified by the KRA to perform the following functions:-

• Prepare and submit tax returns on behalf of a taxpayer
• Liaise with the KRA on behalf of the taxpayer on matters relating to tax
• Provide tax advisory services to the taxpayer
• Represent the taxpayer in matters relating to tax before the commissioner or the Tax Tribunal
• Deal with any matter relating to tax on behalf of the taxpayer

The commissioner must maintain a register of all persons who have been licensed to act as tax agents in Kenya.  In addition, a tax agent is required to act professionally when providing their services.

Kindly consult Nelkins Consulting & Outsourcing to get your tax issues sorted. We are a registered Tax Agent or Tax Consultants.

Understanding the Minimum Tax

Minimum tax is set to come into effect from January 01, 2020. This new tax shall be payable by individuals and businesses irrespective of whether they make a profit or not. The rate for the minimum tax shall be 1% of the gross turnover by the individual or company.

The tax shall be filed and paid in installments. This tax shall be due on the 20^th day of each period ending on the 4^th, 6^th, 9^th, and 12^th month of the year of income.

After self-assessment, an individual or business will determine which is higher between the installment tax and minimum tax. The higher of the two will form the tax payable for the year.

There are however some incomes that are exempted from minimum tax. These are:-

• Employment income
• Income that is subject to the Residential Income Tax
• Income that is subject to the Turnover Tax
• Income that is subject to Capital Gains Tax
• Income from Extractives Sector
• Any other income exempted by the Act

Please contact us at Nelkins Consulting & Outsourcing for more tax solutions to fully utilize the tax-saving opportunities available and to counter tax risks associated with the minimum tax