Taxation

Taxation law refers to the legal rules and regulations that govern how taxes are imposed, collected, and managed by the government. It includes laws on income tax, value-added tax (VAT), customs duties, corporate tax, and other levies that individuals and businesses must pay. The general process for taxation follows these steps:

  1. Registration for Tax: Individuals and businesses must register with the Kenya Revenue Authority (KRA) and obtain a Personal Identification Number (PIN).
  2. Assessment & Filing: Taxpayers calculate their tax obligations based on their income or transactions and file returns through the iTax system.
  3. Payment of Tax: Taxes must be paid within the stipulated deadlines to avoid penalties. This includes Pay As You Earn (PAYE), VAT, corporate tax, excise duty, etc.
  4. Audits & Compliance Checks: KRA may conduct audits to verify tax compliance and ensure correct tax declarations.
  5. Dispute Resolution: If a taxpayer disagrees with a tax assessment, they can appeal through the Tax Appeals Tribunal or the courts.
  6. Enforcement & Penalties: Failure to pay taxes may result in fines, interest, asset seizures, or legal action.

Listen to our Taxation Episodes on Swala Nyeti Podcast.

Do I have to pay VAT, Withholding Tax, PAYE, Instalment Tax, Digital Services Tax and Minimum Tax as a Small Business Owner?

Tax and Finance Questions answered by Guest Lawyer Anna Kandu

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