Times Tower in Nairobi that houses the KRA. [Photo: techweez]
Kenya has jumped 32 places in the World Bank Paying Taxes report to position 92 up from the previous position 125 out of 190 economies globally.
According to the report, the 26 percent improvement has been driven by the use of technology in filing tax returns which have improved efficiency and increased accountability.
According to the latest tax report by the World Bank and the Price Water House Coopers, the decision by the Kenya Revenue Authority to introduce online filing of tax returns has simplified and reduced the burden of tax compliance on businesses and individuals.
On average, the report finds that medium-sized companies in the country pay 9.4 % less tax compared to the Sub-Saharan average of 46.8% and it takes an average of 125 hours to fill returns against a global average of 195 hours.
The government has however been urged to broaden the tax bracket so as to reduce corporate tax as well as the country’s average tax rate which is high compared to many countries that were ranked in the survey.