Presumptive tax is the new tax that is set to commence in January 1, 2019. Many Kenyan Small Medium Enterprises (SMEs) are quite unaware of how the tax will be implemented and this are some of the details each and every business owner needs to know.

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To be eligible for this new tax, one needs to be a Kenyan resident whose turnover does not exceed Ksh 5 million during a year of income. Secondly, those who have a business permit, you will have to pay presumptive tax before they renew the permit for your business.

The due date for payment of the tax is at the time of payment for the business permit or renewal of the business permit.

A taxpayer who wants to pay presumptive tax shall do so on the iTax platform. The taxpayer will then be issued with Payment Registration Number (PRNs) and payment shall be made to KRA partner bank or mobile money (Pay bill no 572572).

The details required to fill for presumptive tax at iTax platform include county details, business category, expected turnover, business name, location and amount of business fee or license.

Failure to pay the penalty on time results to a penalty of 5% and late payment interest of 1%  as outlined in the Tax Procedures Act, 2015.