How to Apply for a Corporate Profit Tax and Gains Tax in Kenya

How to Apply for a Corporate Profit Tax and Gains Tax in Kenya Tax rates. The current corporate tax rate applicable in Kenya is 30% in the case of resident corporations (i.e. limited liability companies). A non-resident company with a permanent establishment in Kenya is taxed at 37.5%.

Procedure on How to Apply for a Corporate Profit Tax and Gains Tax in Kenya

Apply In-Person:

1. Go to the Office of General Directorate of Taxes at the Kenya Revenue Authority. To make the payment of the corporate profit tax and capital gains.
2. Bring and present the required documents to the revenue officer. These documents have been mentioned in the required documents section of this page. They Include:-(i) Tax Identification certificate;(ii) Proof of income(iii) Audited accounts.(iv) Business registration certificate;(v) Articles and Memorandum of Association
3. You will be given a corporate profit tax and capital application form to fill. The tax revenue officer will assess the application and determine any tax payable.
4. The revenue officer will direct you to the cashier to pay any tax due .
5. After payment any outstanding tax you will be can be issued with a Company Tax Clearance Certificate.
   

Apply On-line
Step 1: Get started by logging in to Kenya Revenue Authority Portal

• Before filing returns for your company, you should first register the organization on KRA online tax portal as well as its TAX obligations.
• Go to KRA online tax portal: KRA online tax portal and log in.
• Enter KRA PIN then click continue.
• Enter password and security stamp to login to your KRA account.

Step 2: Make Payment

• If your company PIN is not registered online, follow the guide on how to register it online. You will be redirected to the eRegistration page where you are required to fill in the taxpayer type (non-individual), the PIN, the business registration certificate number, and confirm the security stamp.
• After clicking submit, the iPage section will appear where you are required to fill in all your company’s details. These include the accounting period, business name, type, and subtype as well as your business’ registration and commencement dates to mention a few. Make sure you complete all the sections from A to F and confirm that all the details entered are factual.
• If you have filed tax returns before using iTax, the system will provide most of the information. All that is required of you is updating it where necessary. However, make sure you fill in all the mandatory sections (often indicated using a red star).
• If all the information is filled in and factual, the next page should display a ‘registration successful’ as well as a download link to your new PIN certificate.

Step 3: Download the payment slip and make payment

• After making the selections above click submit to download a payment slip
• Proceed to make payment using payment slip.

Step 5: Obtain Tax Clearance form in your email address.

• After payment of any outstanding taxes, a PDF copy of the TCC (Tax Clearance Certificate) will be sent to your email address which you can print.

Required Documents

1. A copy of certificate of incorporation.
2. List of staff and their annual salaries.
3. The Directors Tax Clearance Certificates (now Electronic Tax Clearance Certificate)
4. Letter of application for registration,

Office Locations & Contacts

Kenya Revenue Authority- Head Office
Times Tower, 19th Floor, Haile Selassie Avenue
P.O. Box 30742 Tel. 310900, Fax 315987 Nairobi, Kenya.
Tel: 2813068 , 2813160 , 2812011.
Fax: 253532,240929 ,Nairobi Kenya.
Email: callcentre@kra.go.ke
Website: Kenya Revenue Authority

KRA online tax portal : KRA online tax portal

KRA Call Centre
Tel: +254 (020) 4999 999
Cell: +254 (0711) 099 999
Email: callcentre@kra.go.ke

KRA Offices : KRA Offices

Eligibility

• Corporate entities operationg in Kenya are eligible for this service

Fees

Nature of tax Rate

• Corporate income tax up to net profit 10,000,000 20%
• Corporate income tax net profit over 10,000,000 25%
• Capital gains tax 20%
• Branch tax 20%

Withholding tax

• Dividends 0%
• Interest 20%(1)
• Royalties from patents, know-how, etc. 20%(1)
• Certain services provided from non-resident entities 20%(1)
• Branch remittance tax 0%

Net operating losses (years)

• Carry back 3 years.
  

Losses incurred in long-term projects can be carried back within the same project with no limits.

• Carry forward 5 years
• Final tax imposed on gross payments. The rate may be reduced under a tax treaty.

Validity

• 12 months

Documents to Use

• Applications forms can be obtained at KRA offices.
• Applications can also be done online.

Processing Time

• Immediate

Need for the Document

Capital Gains Tax (CGT)

• This is a tax chargeable on the whole of a gain which accrues to a company or an individual upon transfer of property situated in Kenya, whether or not the property was acquired before 1st January, 2015.
• It took effect on 1st January 2015.

Corporation Tax

• This is a form of Income Tax that is levied on corporate bodies such as Limited companies, Trusts, and Co-operatives, on their annual income.
• Companies that are based outside Kenya but operate in Kenya or have a branch in Kenya pay Corporation Tax on income accrued within Kenya only.

Information which might help

1. Name of Taxpayer
2. Company name
3. Taxpayer Identification Number
4. Business Name or Trade Name of Taxpayer
5. Bank Details
6. Name of Bank
7. Bank branch
8. Account Number
9. Total Income Chargeable Income Total Tax Payable