Summary: The key taxes Kenyan businesses must file and pay — corporate income tax, PAYE, VAT and excise duty — plus iTax filing deadlines and penalties for late filing.
Key Business Taxes in Kenya
Businesses in Kenya are required to file a number of taxes, including:
- Corporate income tax (CIT) — levied on the income of legal entities, including companies, partnerships, and trusts. The rate of CIT for resident companies is 30%.
- Pay As You Earn (PAYE) — deducted from employees’ salaries and paid to the government by their employers. The rate varies depending on the employee’s income.
- Value Added Tax (VAT) — levied on goods and services at every stage of the supply chain. The standard rate of VAT in Kenya is 16%.
- Excise duty — levied on goods such as alcohol, tobacco, and fuel; rates vary depending on the good.
Filing via iTax
Businesses are required to file their taxes online via the iTax system. Key deadlines:
- CIT — 30th June of the following year after the end of the accounting period.
- PAYE — 15th of the month following the end of the tax month.
- VAT — 20th of the month following the end of the tax period.
- Excise duty — 15th of the month following the end of the tax period.
Penalties for Late Filing
A business that fails to file on time may face:
- Interest on the tax owed;
- Penalties for late payment;
- Enforcement action, such as a tax audit or tax investigation.
Businesses should take steps to ensure they file their taxes on time and avoid penalties.
Related resources: Kenya Tax Consultancy · Free Tax & Excel Downloads