The Kenya Revenue Authority (KRA) has cautioned Kenyans who ply their trade on online platforms to file their tax returns just like every other citizen.
According to the regulator online workers are mandated by law to file and pay taxes, which may include VAT, excise duty and any other obligations required under the business unless income or supply is expressly exempt in the tax law.
“KRA has noted that some taxpayers engage in online business and they do not file returns or pay taxes on the transactions. KRA would like to advise that unless exempted by law, appropriate taxes should be paid,” read part of a notice by the tax authority published in local dailies.
The tax regulator similarly called on businesses whose annual taxable turnover exceeds Ksh. 5 million to register for VAT and charge tax. Those who fall under the 5 million mark have been advised by the regulator to pay presumptive tax.
The announcement from the regulator comes as reminder with the June 30 set deadline of filing tax returns fast approaching.
“Late submission of a tax return is an offence under the Tax Procedure Act, 2015 which attracts a penalty of Kshs. 2,000 in case of individuals and Kshs. 10,000 or 5% of the tax due in any other case. These punitive penalties are avoidable by filing tax returns in time,” the tax collector said when announcing the deadline date in February this year.
KRA pin holders with no source of income, such as university students, will also be expected to file a NIL return before the deadline elapses.
In order to ensure efficient filing, KRA has also provided nationwide support at the Tax Service Offices to those who may need assistance in filing. Taxpayers are encouraged to visit those offices for support in filing of returns.