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Taxes in Kenya
Taxes play a major role in financing development projects in Kenya – they are critical to the economy. Kenya has an extensive network of taxes including:
- The individual income tax rate is progressive, ranging from 0 to 30 percent.
- Companies are charged 30 percent tax on profits.
- Investment income is subject to tax at a rate of 30 percent.
Value added tax (VAT):
- VAT is charged at a rate of 16 percent.
- VAT is generally charged on all goods and services rendered by registered suppliers.
Customs and Excise Duties:
- Customs and Excise duties are imposed on imported goods and services.
- The rates of Customs and Excise duties vary, depending on the type of goods and services.
- The amount charged is based on the weighted average of the CIF (cost, insurance and freight) value of the goods.
Property and Land Rates:
- Property and land rates are imposed on the owners of structures erected on land or on land ownership.
- The rate applied varies from one city to another.
- Stamp duty is a tax imposed on certain transactions.
- It is charged based on the value of the transaction and can range from 0.1 percent to 15 percent.
- Gaming tax is imposed on the operators of certain gambling activities such as casinos, lotteries and sports betting.
- The rate of taxation varies, depending on the type of activity and the applicable gaming tax.
In conclusion, Kenya has a range of taxes that play a critical role in financing its development projects. The types of taxes and their respective rates vary, depending on the type of activity. It is important to comply with the country’s tax regulations in order to avoid penalties and other legal implications.