Frequently Asked Questions
As long as you have a registered company with a Pin and you have VAT as one of tax obligation that your company will be dealing with You are obligated to declare VAT by filing a return by 20th of every month and failure to do so will attract a fine of KES 10,000.This means even if there are no activities i.e trading you are obligated to file a nil return by 20th of every month.
Ushuru.co.ke will assist in putting your tax matters in order click here for further instructions
The Finance Act 2015 introduced a new Section 6A in the Income Tax Act Cap 470 Laws of Kenya, which provides for a simplified tax regime on rental income. Residential Rental Income Tax shall be charged at a rate of 10% of gross rent received on monthly basis. No expenses will be allowed for deduction.
If you as a landlord you fall in this regime you will not be subjected to further taxes on the residential rental income declared. In addition, eligible landlords shall not be required to file annual returns unless one has other incomes e.g. commercial rent, business income, farm income, etc
Commercial rental income will attract VAT which will be payable before 20th of every month. This will not be the final tax you will be required as a landlord to file the annual returns on the commercial rental income. The annual tax rate will be 30% net of rent collected this means that under this regime you are allowed to deduct expenses before tax.
iTax is an online portal provided by the Kenya Revenue Authority (KRA) through which tax payers are able to file returns, generate reports and make payments for taxes in Kenya.
All Kenyan residents above 18 years of age are required to have a Personal Identification Number (PIN) with the KRA which uniquely identifies them with the revenue authority.
PINs obtained before iTax was introduced need to be “migrated” onto the iTax online platform.
Click here to get a PIN or update your profile on iTax.
As long as you have a PIN number, you are required to file at least one return per year in relation to your income.
We can assist you file a tax return for any year of income here.
You will be required to pay a penalty of KES. 20,000 for each tax return filed late (after the tax deadline – see tax filing deadlines and penalties here
To effect this change, a tax payer needs to present their PIN and original ID card to either the iTax help centre or a huduma centre. Ushuru.co.ke can assist in linking your ID card details to your PIN.
Kindly provide PIN details and upload a copy of your ID card here
While it is possible to amend bio-data information on your iTax profile, the approval process usually takes time and often requires follow up with the relevant KRA tax station.
Ushuru.coke can assist you in both making the amendments to your iTax profile and following up the process to completion. To make such a request, kindly input your PIN and details you would like changed here
This is a common problem that can be remedied by reaching out to the KRA. A tax payer is required to write a formal letter to the KRA or the respective KRA station requesting for the de-registration from VAT.
Ushuru can undertake this application process on behalf of the tax payer and confirm such de-registration on iTax.To deregister your PIN, please send us an email request to here.
A person is resident in Kenya if he or she has a permanent home in Kenya and is present for any time during the year; if he or she is present in Kenya for at least 183 days in the tax year; or if he or she has been in Kenya for an average of 122 days in the tax year and the previous two years.
For a person living in the diaspora to regularize their tax status in Kenya, one would need to get an iTax PIN, file returns and pay any penalty for late filing. See here for the diaspora help desk. (diaspora page includes: return page, update iTax profile, contact us directly)