CPA Simon

CPA Simon Keeping you updated with Finance & Tax Dynamics.

17/11/2023

*Notification* :

Kenya Revenue Authority(KRA) has announced all tax payments via mobile money will be made through PayBill 222 222.

This is the government's single payment platform introduced recently.

In a statement, the authority says the changes are with immediate effect in line with the Kenya Gazette No. 16008 of 2022 and the Presidential Directive.

A current trend is the youth registering companies when they do not have the knowledge on how to handle taxes. Such ind...
28/06/2020

A current trend is the youth registering companies when they do not have the knowledge on how to handle taxes. Such individuals, without knowing also go ahead and register their companies for VAT while they make less than five million. The same business owners without knowledge fail to make monthly VAT returns which attracts a fine of 10,000 shillings monthly, plus accrued interests. Thinking about a startup company, by the end of the year, you owe KRA 120,000 shillings and maybe the tenders you have supplied have not been paid. Such minute mistakes, run you more into debt.
Without proper information on taxation, even if you get a contract the following year, you will be required to provide tax compliance certificates. But to be tax compliant, you will need to pay the principal tax and fines accrued to KRA. If for the new contract you are set to earn say a profit of 300,000 and to be tax compliant you will need to pay more than 200,000 and keeping in mind that you may be having a bank loan which you need to service, your business will end up dying and it will leave you frustrated.
My honest advice for startups is to learn about taxes first, your taxation obligations and consider if you are ready to progress. Fact is, KRA will not be considerate of you because you are a beginner.No. You have to move with the flow. Seek information about taxation from professionals. It is really an issue that we have noted with SMEs.

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27/06/2020

Stay informed.

As with the rest of the world, the Kenyan business scope has been affected by Covid-19. The disruption caused by the unp...
26/06/2020

As with the rest of the world, the Kenyan business scope has been affected by Covid-19. The disruption caused by the unprecedented disease has seen organizations lay down their staff while others have even closed down. At the same time, across different sectors, the effect has been variant. Altogether, Covid-19 has presented businesses with the need to be prepared for different kinds of threats. Going on forward, organizations will need to make effective plans in the preparedness of such risks. Understanding the nature of your business and making suitable plans to address such incidents are among the best ways to see your business thrive regardless of unfavorable externalities.

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Everyone in business wants to have good relationship with the government. But failure to comply with taxation regulation...
25/06/2020

Everyone in business wants to have good relationship with the government. But failure to comply with taxation regulations fronts itself as a threat that would affect the relationship between your business and the government and by extension, your reputation. In the past, levels of tax compliance were low owing to the involving processes that you had to undergo while pursuing taxation services. However, KRA launched the i-tax system, which is an easier and more accessible way of receiving tax services such as PIN registration, returns filing, withholding tax checking, tax compliance certification, among others. During this critical time, there would be nothing better you would pursue than an impeccable relationship with the government; first, by being tax-compliant.

For more information, write to us at: [email protected]

Do you ever sit and wonder…?Why do I have to pay taxes?Why is KRA concerned?How is tax used by the government? Every yea...
24/06/2020

Do you ever sit and wonder…?
Why do I have to pay taxes?
Why is KRA concerned?
How is tax used by the government?

Every year around June, the most shared message is, “The deadline for filing returns is due.” Many people find it stressful to sit down and make reports about their income and the taxes paid or accrued altogether. But paying taxes is a civic duty as well as a requirement by law. In Kenya, we have the national and county governments. To execute their mandate, tax is a fundamental need. Paying your taxes provides both government levels with the capital they need to pay up their employees, provide services, and carry out development projects.
The Kenya Revenue Authority (KRA) is the organ concerned with taxation in the country. Its primary duties are to assess, collect, and account for all revenues per the written laws and their provisions. Both employers and employees are needed to file their tax returns for KRA to assess and account for all the revenues collected and advise the government on the subsequent measures to take.
It is necessary for you to pay up taxes and file your returns. Regulatory specifications provide for penalties and charges when you do not provide your returns in time. Even when you are a law-abiding citizen who pays their taxes, have you handed in your returns? To clear it up, the deadline is first approaching!

Seek more details on [email protected]

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