PAYE (for employers only)
PAYE is a method of collecting tax at source from individuals in gainful employment, including workers of Religious Organizations and foreign missions working in Kenya.
Withholding Tax
This is a method whereby the payer of certain incomes is responsible for deducting tax at source from payments made and remitting the tax so deducted to the Authority. Withholding tax may or may not be a final tax.
Advance Tax
Tax paid in advance before a public service vehicle or commercial vehicle is licensed at the rates applicable.
Turnover Tax
Applicable to businesses whose turnover (income) does not exceed Kshs. 5 million during any year of income. It is paid every three calendar months and taxed at a rate of 3% on gross income.
Related: How to apply for a new kra pin
Rental Income for Residential Property
It is payable by a resident person and applies to rental income that has accrued or been derived from Kenya for the use or occupation of residential property with rental income of Kshs. 10 million or below per annum.
The rate of tax shall be 10% on gross rent received and it is paid on a monthly basis
Installment Tax
Tax paid by both individuals and corporate taxpayers who have a tax liability of over Kshs. 40,000 payable for any year. This excludes individuals whose tax liability for a particular year is fully covered by PAYE.
Note to users
Filing Nill KRA returns is always free. You need to login to their official website portal and follow step by step guide.
Warning!
If you fail to file returns for both nil or employment which is done yearly, you will be charged a fine. You can always appeal if you are not employed.
Capital Gains Tax (CGT)
This is Income in respect of which tax is chargeable on a gain which accrues to a company or an individual.
Fringe Benefit Tax
Fringe benefit tax is payable by every employer in respect of a loan provided to an employee, director or their relatives at an interest rate lower than the market interest rate.
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