Late Filing Penalty: 5% of the tax due or KES 20,000, whichever is higher, for corporate tax returns. Late Payment Penalty: 20% of the unpaid tax. Interest on Unpaid Tax: 1% per month on the outstanding amount.

Businesses with an annual turnover exceeding KES 5 million must register for VAT. Once registered, they must charge VAT on taxable supplies, file monthly VAT returns, and remit collected VAT to the KRA.

Corporate Tax: Annual returns are due by the last day of the sixth month following the end of the financial year. VAT Returns: Monthly returns are due by the 20th of the following month. PAYE: Monthly returns are due by the 9th of the following month. TOT: Quarterly returns are due by the 20th of the month following the end of each quarter.

Yes, Kenya offers various tax incentives for SMEs, including: Investment Deduction: Deduction of up to 100% on capital expenditures for certain investments. Export Processing Zone (EPZ) Incentives: Tax holidays and reduced corporate tax rates for businesses in EPZs. Special Economic Zones (SEZ) Incentives: Tax incentives including reduced corporate tax rates and VAT exemptions.

Registration is done through the Kenya Revenue Authority (KRA) online portal, iTax. The process includes creating an iTax account, obtaining a Personal Identification Number (PIN), and registering for the relevant tax obligations such as VAT, PAYE, and Corporate Tax.

Yes, the Turnover Tax (TOT) is designed for small businesses with an annual turnover between KES 1 million and KES 50 million. The tax rate is 1% of the gross sales, simplifying the tax process for small enterprises.