KRA_Increased Taxing

KRA’s Message To SME’s

Small and Medium sized enterprises are  the latest Kenya Revenue Authorities’ (KRA) target to help raise the number of active taxpayers to 4 million by 2018 from the current 1.6 million active taxpayers.

This follows the authorities’ campaign on Rental Amnesty rolled out early this year which targets Landlords and property managers to declare all unpaid taxes and voluntarily comply by getting their tax records in order.

Commissioner General John Njiraini plants a tree  during the kickoff of the Tax Payers Month held today at KRA Offices. PHOTO COURTESY: www.ogilvypr.com

Commissioner General John Njiraini plants a tree during the kickoff of the Tax Payers Month held today at KRA Offices. PHOTO COURTESY: www.ogilvypr.com

“The authority will engage the SME sector to better understand taxpayers in this category, which will   places us in a stronger position to design and implement effective compliance strategies, which is critical in developing sustainable taxation systems,” said Commissioner General, John Njiraini.

Marking the Launch of KRA’s taxpayer’s month as he flagged off a road show to engage SME’s, Njiraini said targeting the SME sector is one of the strategies being adopted by the authority to broaden the tax base as they plan to revamp the turnover tax strategy so as to focus on recruitment of SMEs.

SEE ALSO: Landlord You are Forgiven;KRA

In addition, the commissioner said that small and medium businesses’ do not register voluntarily, while those who do register often fail to keep adequate records, file tax returns, and settle their tax liabilities promptly and therefore in the small business context, opportunities for evasion are high and resources are often scarce for field auditing.

During the road show, KRA will engage small and medium entrepreneurs with a view to improving their tax compliance, it will offer a broad range of services including registering SMEs and assisting them file their returns.

The authority also announced plans to work closely with Counties to incorporate Personal Identification Number (PIN) to business licensing at the Counties.

This will help expand the scope of services and activities for which PIN is a requirement and adopting a business classification, structure and tax rates similar to those being applied by the Counties.

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