Corporate Tax Services In Kenya

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What Is Corporate Tax Services in kenya?

A corporate tax is a tax on the profits of a corporation. The taxes are paid on a company’s taxable income, which includes revenue minus cost of goods sold (COGS), general and administrative (G&A) expenses, selling and marketing, research and development, depreciation, and other operating costs.

With Corporate Tax Services in kenya ,reliefs and rates changing on an annual basis, it’s important to make the most of all of the exemptions, allowances and deductions available for tax returns calculations.

Our company tax accountants cover all aspects of technical tax guidance your business may need. We spend time with you to understand your circumstances, minimising tax and the best way to structure your business for growth and risk mitigation.

Filing Corporate Tax Services In Kenya

All active companies must file a corporate tax return to KRA each year to work out how much corporation tax is owed.

But there are plenty of reliefs that can help reduce your bill.

What is a corporate tax return?

A corporate tax return is based on the profit or loss you have made and any expenses or allowances claimed to calculate your corporation tax.

The return and payment must be submitted to KRA in Kenya.

Your corporate tax services in Kenya takes the profit or loss you have made in your accounts to work out how much you owe KRA in corporate tax.

Deadline to file your corporate tax return

Businesses typically need to file a corporate tax return 12 months after the end of their accounting period.

An accounting period is set by KRA and the taxman will inform you of your deadline.

What is in a company tax return?

Your corporate tax return incluces details of your profit or loss from your statutory accounts to work out how much corporation tax is due.

The annual accounts are useful as the balance sheet and profit and loss report provide data that will be used in the corporation tax return.

But the profit you make is not necessarily directly linked to the amount of tax your company will pay as there are several reliefs, allowances and expenses you can claim to reduce the bill

First there are allowable expenses such as business travel or stationery that you can claim for.

Businesses can also carry forward losses from previous years to set against future profits.

Tax returns and tax payments

Each corporate entity is required to file a self assessment tax return (SAR) together with a set of audited financial statements within 6 months after the end of the accounting period. The final tax for a year is payable not later than four months after the end of accounting period while advance instalment taxes for profit making businesses are due per the table below:

 

Instalment

Due date Rate
First Instalment 4th Month 25%
Second instalment 6th Month 25%
Third instalment 9th Month 25%
Fourth instalment 12th Month 25%
Agricultural Companies
First Instalment 9th Month 75%
Second instalment 12th Month 25%

 

The basis of assessing instalment tax is the lower of the preceding year’s tax liability multiplied by 110% and the current year’s estimate.

 

Success breeds complexity; we can help you simplify

Our corporate tax specialists coordinate with our federal, international, state and local, and tax technology specialists to identify and streamline effective approaches to your corporate tax concerns. These may include:

  • Tax compliance
  • Accounting for income taxes
  • Technology selection and optimization
  • Process and workflow improvement
  • Mergers and acquisitions tax services
  • Co-sourcing and outsourcing of roles or processes
  • Specialty tax consulting
  • Strategic tax planning

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