in ,

KRA Goes After Online Businesses Evading Tax Remission

KRA
KRA Commissioner General John Njiraini(L) [PHOTO/ COURTESY]

All local online businesses will be required to pay taxes and file returns, the Kenya Revenue Authority (KRA) has announced.

In a public notice, the KRA warned proprietors that are evading taxes, urging them to comply with the law unless they are exempted.

“KRA has noted that some taxpayers engage in online business and they do not file returns or pay taxes on the transactions. KRA would like to advise that unless income or supply is expressly exempt in the law, appropriate taxes should be paid,” announced the taxman.

Online traders are required to file and pay taxes, which may include VAT, excise duty, withholding tax, PAYE, corporate taxes and any other tax obligations required under the business.

Those whose annual taxable turnover is below Ksh5 million and above should register for VAT obligation and charge tax while those whose turnover is below Sh5 million should pay presumptive taxes.

KRA has already organized a training session for all online traders to learn about tax compliance and to get help in declaring taxes.

This comes as the body seeks to increase tax collections and expand the taxable population so as to collect more funds from Kenyans.

Read: Uchumi Locks Horns With KDF Over Ksh2.8 Billion Land Along Thika Road

KRA has projected that it will miss the annual tax collection target set by the Treasury by Ksh110 billion by the end of June.

Receipts from taxes, levies, earnings from investments, rental income and fines – technically referred to as ordinary revenue – amounted to Ksh722.28 billion in the first six months of the financial year against a target of Ksh774.99 billion.

The ordinary revenues in the July-December 2018 period were, however, Ksh65.39 billion or 9.95 percent more than Ksh656.90 billion in the corresponding period a year earlier, which was clouded by a bruising presidential poll contest.

Email your news TIPS to news@kahawatungu.com or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu

Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Julius Malema

Malema Angered After Election Official Asked Wife To Remove Artificial Nail

Magufuli’s Gov’t Drops Kenyan Firm In Ksh18 Billion Deal Over Legal Issues