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Questions on VAT and Taxes and Returns
Rank: Elder Joined: 10/4/2006 Posts: 13,821 Location: Nairobi
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I registered a company in Nov 2011 and got a PIN. I however never traded with it and I am now in the process of 'kuitoa kwa mawe' can someone tell me what I need to do as far as KRA is concerned? coz i need/want a valid tax compliance cert. at what point am I eligible to apply for VAT? do I need to apply for PAYE if I have 3 staff members only? All Mushrooms are edible! Some Mushroom are only edible ONCE!
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Rank: Hello Joined: 1/22/2014 Posts: 6
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when you register a company you are given 18 months grace period ,after which you are required to start filing your returns, the fines for not filing returns is kshs 2600 per year. so i think you will do the math from their. you can volunteer to apply for VAT but you will have to apply if you think your yearly revenues will be more than 5 mill.terms of employment will determine your application for PAYE and remember the retirement benefit schemes also with NSSF.
as for your tax compliance enda KRA ask for it, if you have any penalties for not filling yearly returns ulipe upewe compliance takes less than a week.
hope this helps.
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Rank: Elder Joined: 10/4/2006 Posts: 13,821 Location: Nairobi
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this helps thanks All Mushrooms are edible! Some Mushroom are only edible ONCE!
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Rank: New-farer Joined: 1/16/2014 Posts: 25
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What about if I was part of the directors of a company and we never filed any rteurns, now I want a tax compliance cert for my sole propriatorship.
Will I be required to pay penalties for that company before being cleared for tax compliance?
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Rank: New-farer Joined: 1/16/2014 Posts: 25
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I can answer my own question on this one: YUP!! I got the tax clearance. :)
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Rank: Elder Joined: 5/1/2010 Posts: 3,024 Location: Hapa
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Truebeauty wrote:I can answer my own question on this one: YUP!! I got the tax clearance. :) did you have to pay the penalties? :) Float like a butterfly, sting like a bee. - Muhammad Ali🐝
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Rank: Member Joined: 7/27/2008 Posts: 241
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What did you have to do/present? Quote:Buy when there's blood in the streets, even if the blood is your own...
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Rank: New-farer Joined: 1/16/2014 Posts: 25
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No Butterflyke, I did not pay the penalties for the company, or rather I was not even asked about it. I assume since a company has its own PIN and is a seperate entity from its directors, then the directors can't be held liable for its debts. But should we want a tax compliance cert for the company, then we'd have to fork out the $$$$.
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Rank: New-farer Joined: 1/16/2014 Posts: 25
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iKenya wrote:What did you have to do/present? iKenya, I just went with my PIN number and a form requesting for tax compliance cert. The only issue I had was that when filing last year's return, I did not attach my tax relief from my insurer so it reflected as if I owe some amount in taxes. So I went to my insurers, got a copy of the tax relief, took it to them and they ammended their records, and I got my compliance cert. This year I filed the returns online. I asked them whether the tax relief cert will bring issues next year since I did not attach it in the return. They said no, if the system did not give me an error in that part for tax relief, then am good to go. So I'm waiting for next year to verify that assertion.
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Rank: Elder Joined: 5/1/2010 Posts: 3,024 Location: Hapa
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thanks for sharing @Truebeauty Float like a butterfly, sting like a bee. - Muhammad Ali🐝
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Rank: Member Joined: 5/8/2013 Posts: 386 Location: Nyali mombasa
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Truebeauty wrote:No Butterflyke, I did not pay the penalties for the company, or rather I was not even asked about it. I assume since a company has its own PIN and is a seperate entity from its directors, then the directors can't be held liable for its debts. But should we want a tax compliance cert for the company, then we'd have to fork out the $$$$. I registered my sole proprietor last year October, don't have the pin for it and have never filed my personal returns either (mjengo juacali)so now I want to activate my never used PIN and get one for the biz, how do I go about that.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Kihara joni wrote:Truebeauty wrote:No Butterflyke, I did not pay the penalties for the company, or rather I was not even asked about it. I assume since a company has its own PIN and is a seperate entity from its directors, then the directors can't be held liable for its debts. But should we want a tax compliance cert for the company, then we'd have to fork out the $$$$. I registered my sole proprietor last year October, don't have the pin for it and have never filed my personal returns either (mjengo juacali)so now I want to activate my never used PIN and get one for the biz, how do I go about that. Through the KRA Portal. Life is short. Live passionately.
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Rank: New-farer Joined: 1/16/2014 Posts: 25
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You see Kihara, a sole proprietor and an individual are one and the same thing so your PIN is automatically the business's PIN. That's why in that KRA Tax return form, there is a part for income from business, income from agriculture, income from this or that.
You may have to ask those KRA guyz if you owe any penalties for never filing a return since you got the PIN; IMO I don't think you owe any penalties if you are not formally employed. Having said that, even a nil return is a return, so hata kama you didn't make anything, just file the zero return, its better that being fined.
I am in formal employment, so next year will be the first time I file returns with some entries in the business portion, I will definitely need help with that.
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