Tax Preparation Services
- September 24, 2022
- Posted by: admin
Tax Preparation Services
Preparing your own taxes can be like cooking for yourself. You won’t get food poisoning, but you’re also not getting the most out of your ingredients. If cooking is your passion, you may disagree, but consider how much your tax returns would change if you had as much passion for doing them as you do making a meal. To get the most out of your taxes, leave the tax preparation work to the experts, best-rated Outsourced Tax Preparation Services in Kenya.
When you prepare your own taxes, you may be missing out on deductions; paying a professional to handle your tax preparation services saves you money.
There are primarily two main reasons why you should let us prepare your tax returns, but these two reasons should persuade you to hire Us:
- 2Max Group is experienced in completing tax preparation services returns for individuals and successful businesses who know what to look for and where to look for it. They can find you the best deductions while making sure their work is error-free. No matter how well you think you know the tax code, a professional accountant who does taxes for a living knows how to do your tax preparation better.
- There is a no larger investment you make than your time. Time is not a renewable resource. You need to spend your time running your business, earning your income, and growing your wealth. Every minute you spend sweating over your tax return is a minute that could be better spent.
Still, Doing Your Own Taxes?
If you prepare your own taxes, you’re in the minority. Only about a third of Kenyans do their own taxes, and you can bet they’re not getting all the deductions they’re due. As your wealth increases, so does your tax burden. If you’re still doing your own taxes — or having a friend or relative who does tax preparation for you — you’re missing out on the benefits you deserve if you live in Kenya.
Value Added Tax (V.A.T) Tax Preparation
If you run a business, determining when goods you have supplied are subject to VAT is complex and time-consuming. In addition, the Kenya Revenue Authority requires you to withhold VAT at source if appointed as a VAT Withholding agent. This is charged on eligible goods supplied or services provided in Kenya and on importation of taxable goods or services into Kenya. VAT is collected by registered persons at designated points who are then remitted to the KRA. To ensure that your business is VAT compliant, we’ll support you to:-
- Submit monthly VAT returns online on iTAX.
- Submit a NIL return where no VAT is to be declared.
- Generate an E-slip that will be used to make physical payments of the tax due.
Pay As You Earn (PAYE) Tax Preparation services
This is a method of collecting tax at source from individuals in gainful employment.
Companies and Partnerships with employees are required to deduct PAYE tax according to the prevailing tax rates from their employees’ salaries or wages on each payday for a month and remit the same to KRA on or before the 9th of the following month.
You should note that PAYE preparation service applies to bonuses, directors’ fees, commissions, weekly wages, and monthly and annual salaries.
Every employee is eligible for a tax credit often referred to as personal relief. Also, KRA offers insurance and mortgage relief for qualified individuals.
We help individuals and companies file PAYE tax on a monthly basis.
Corporate Tax Preparation Services
2Max Group Tax Services has extensive tax experience in preparing, Limited Liability Company, Partnership, or Sole Proprietor tax returns.
This is a form of Income Tax that is levied on corporate bodies such as Limited companies, Trusts, and Co-operatives, on their annual income.
Companies that are based outside Kenya but operate in Kenya or have a branch in Kenya pay also pay Corporation Tax on income accrued within Kenya only.
Rental/Residential Income Tax
This is a tax charged on rental income received from renting out property. Taxation of rental income depends on how the rented property was used for residential or commercial purposes.
Companies and Partnerships that rent out the property to other persons for either residential or commercial use are required to pay income tax on rent received
To facilitate compliance, KRA appoints agents to withhold and pay, a percentage of the gross rent as the tax. These agents can be verified via the agent checker on iTax.
Tax Preparation Services in Kenya from a Professional
When you work with 2Max Group, you get a comprehensive approach. These tax accountants get to know you, your aspirations and your values. They aren’t just number-pushers; instead, they look beyond the numbers to find ways to make your money work for you, to move you further down the path toward where you want to be.
As one of the leading tax preparation companies in Kenya, 2Max Group is well equipped with the latest professional tax softwares to give you quick and efficient tax consultancy.
Pros of Outsourcing Tax Preparation Services
- Uses cutting-edge technology to provide security: Outsourcing businesses store your data on extremely secure servers that protect your critical information with powerful encryption technologies. You’ll always have access to the most recent versions of tax software and tools if you outsource tax preparation services. Businesses can leverage the software they use to automate data collecting and tax declaration processes.
- Reduce Errors and Increase Compliance: Your outsourced tax preparation staff can make sure you’re following all federal, state, and local tax rules and policies. Tax professionals can also assist you in avoiding fines and penalties as a result of delays and errors caused by incorrectly estimated taxes. Your outsourced staff will keep you up to date on any new tax or accounting standards, as well as any upcoming adjustments.
- Strategize Tax Planning: Outsourcing tax preparation services allow you to compute payroll taxes and budget for any money you may owe with the help of an effective tax planning tool. They minimize redundancies and laborious procedures with a data-centric approach, increasing efficiency through digitization.
- Access to a Higher Level of Expertise: By outsourcing your tax preparation services, you may be able to collaborate with financial specialists that specialize in related industries. It can supply you with a ready-to-go staff that can adjust the allotted resources to meet your company’s demands.
- Efficient Document Management: Outsourcing your tax preparation will ensure that your data is accurately collected, categorized, and sorted so that the outsourced team can utilize it to prepare and file federal, state, and local taxes for your company as needed. In addition, the team will offer you annual payroll tax returns. To perform jobs with 100 percent accuracy, they usually use a two-step review procedure.
- Save Time: You can focus on customer acquisition, sales, and other important company matters by freeing up your time. You can also save time by entrusting the determination of tax obligations and the recruitment of tax specialists to an outsourced expert.
- Outsourcing tax preparation services allow businesses to save money on staffing and office supplies. Tax outsourcing also helps you to cut your tax preparation costs and fees for the year-end audit, enhancing your company’s ROI automatically.