OmbeniFaraja/kra_phi3_format · Datasets at Hugging Face

conversations listlengths 2 2
[ { "from": "human", "value": "Can I appoint a representative to onboard me on eTIMS?" }, { "from": "gpt", "value": "Yes.\nYou can appoint a suitable representative to sign up and install the eTIMS solution on your behalf.\nThe following is required:\n\ti. An introductory letter, signed by at least one of the directors or partner or business owner clearly indicating who has been appointed as the tax representative and their role in the business. Include your contact information, in case a KRA official will need to contact you.\n\tii. The director(s) or partner(s) or owner of the business should fill in and sign the eTIMS Acknowledgement & Commitment Form\n\tiii. Copy of the director's/partner’s/owner’s national ID.\n\tiv. Copy of CR12 form for companies or Partnership Deed for Partnerships.\nThe above documents should be uploaded by the representative on the eTIMS portal." } ]
[ { "from": "human", "value": "Where can I get more information about eTIMS?" }, { "from": "gpt", "value": "You can ask me any question about eTims and I will be able to answer you. What do you want to know?\nAlternatively, You can either:\n\ti. Visit the KRA website and access the eTIMS menu\n\tii. Send a Direct Message (DM) via Facebook or Twitter using the official KRA pages.\n\tiii. Visit the nearest KRA office" } ]
[ { "from": "human", "value": "What are the Solutions available on eTIMS?" }, { "from": "gpt", "value": "The solutions available include:\n1. eTIMS Lite (Web) - Web based solution accessible through eCitizen. This solution is for businesses with minimal transactions.\n2. eTIMS Lite (USSD) - Accessed through the short code *222#. This solution is for individuals and sole proprietors.\n3. Online Portal- Tailored for taxpayers in the service sector exclusively, where no goods are supplied.\n4. eTIMS Client – A downloadable software designed for taxpayers dealing in goods or both goods and services. The software supports multiple branches and pay points/cashier tills.\n5. Virtual Sales Control Unit (VSCU) – This solution enables seamless system-to-system integration between the taxpayer’s invoicing/ERP system and eTIMS, catering to taxpayers with extensive transactions or bulk invoicing.\n6. Online Sales Control Unit (OSCU) – This solution also facilitates system-to-system integration between the taxpayer’s invoicing/ERP system and eTIMS. It is ideal for taxpayers using an online invoicing system." } ]
[ { "from": "human", "value": "How can I contact eTims?" }, { "from": "gpt", "value": "You can contact eTims through the following channels:\nEmail: [email protected]\nPhone Numbers:\n1. 0709 016 995\n2. 0709 017 719\n3. 0709 017 731\n4. 0709 017 718\n5. 0709 017 724\n6. 0709 017 735" } ]
[ { "from": "human", "value": "How to generate invoices using eTims?" }, { "from": "gpt", "value": "Step 1: After successfully initializing your eCitizen eTIMS account click on Sales to raise an invoice\nStep 2: Click Invoice\nStep 3: Start by selecting whether it’s a Business to Business or Business to Customer transaction. Thereafter you can upload your logo (optional).\nStep 4: Create a customer or select the customer if they already exist. To create a customer simply click the Add New button.\nStep 5: If it is a valid KRA PIN the details of the customer will appear. Click on Add to add the customer to your list of customers\nStep 6: Once the customer is added to the list, select the customer you are invoicing. The details of the customer will appear automatically.\nStep 7: Confirm that the tax type is D (Non-VAT). You can add a note (optional) and also input the Due date\nStep 8: Click on the Add Item button to add an item\nStep 9: Input the item details i.e. the product/service, description, unit cost and quantity then click Add\nStep 10: A summary of the items will be displayed as follows to confirm if the details are in order\nStep 11: You can include any terms and conditions that you would like your customer to see and know and finally select the payment method\nStep 12: Once you have confirmed that all the invoice details are in order, scroll back up and save your invoice. NB: You can either save and download the invoice using the Save button or save and send the invoice to your client via email using the Save And Send button." } ]
[ { "from": "human", "value": "How can I change the current email address from the one I registered with in iTax?" }, { "from": "gpt", "value": "Change of email address can be initiated by the taxpayer. On the taxpayers profile under registration, the taxpayer is allowed to amend PIN details.\nOnce the process is initiated by the taxpayer, a task is created for approval by a KRA officer." } ]
[ { "from": "human", "value": "In case I forget my password what can I do?" }, { "from": "gpt", "value": "Go to the iTax log in page and select forgotten password. You will be asked for the security question you used when registering for the first time. Once you submit the information successfully, new log in credentials will be sent to your registered email address." } ]
[ { "from": "human", "value": "How can I change my password if I have forgotten my security question?" }, { "from": "gpt", "value": "The taxpayer is required to send this PIN to KRA for password and security question reset through:\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]
[ { "from": "human", "value": "What do I do if my Pin is locked?" }, { "from": "gpt", "value": "All blocked password are reset automatically within 24 hours.\nAlternatively the taxpayer is can send this PIN to KRA to be unlocked reset through:\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]
[ { "from": "human", "value": "At what age does one obtain a KRA PIN?" }, { "from": "gpt", "value": "A PIN is issued upon acquisition of valid identification documents (e.g ID card)" } ]
[ { "from": "human", "value": "What is the requirement for one to obtain a KRA PIN?" }, { "from": "gpt", "value": "Valid identification documents (National ID card for residents, Alien ID for non-Kenyan residents, Certificates of registrations for non-individuals)" } ]
[ { "from": "human", "value": "What should I do if I forget my password?" }, { "from": "gpt", "value": "Go to the iTax log in page and click on forgot password link, answer the security stamp arithmetic and new log in credentials will be sent to your registered email address." } ]
[ { "from": "human", "value": "How can I change the current email and physical address information on iTax?" }, { "from": "gpt", "value": "Change of email address can be initiated form the iTax profile, under Registration- Amend PIN details. Once the process is initiated by the taxpayer, a task is created for approval by a KRA officer." } ]
[ { "from": "human", "value": "How can limited partnerships whose partners are non individuals register for PINs on iTax?" }, { "from": "gpt", "value": "Select Business Type as Others and Business Sub Type as Partnerships. Capture the partners PIN under the Directors/Associates. Enter the profit sharing ratio and click on the ADD button, and proceed to add the second PIN.\nNOTE: At the moment, this is only workable for new registrations but not iPage update." } ]
[ { "from": "human", "value": "My PIN has been stopped on iTax. What should I do?" }, { "from": "gpt", "value": "Kindly contact your tax station for clarification on this." } ]
[ { "from": "human", "value": "My name has been wrongly spelled in iTax" }, { "from": "gpt", "value": "The taxpayer is required to send his PIN together with scan colored copies of his original ID card or certificate of incorporation for data correction through the email [email protected]" } ]
[ { "from": "human", "value": "I am a Non- Kenyan Non- Resident whose name was captured wrongly on iTax. Is there a way to correct this?" }, { "from": "gpt", "value": "We currently do not have an amendment function for names for those PINs linked to passports." } ]
[ { "from": "human", "value": "What do I do after registering and can see only two icons (change password and logout)?" }, { "from": "gpt", "value": "Normally a taxpayers profile will be fully populated will all icons within 24 hours upon registration. However a taxpayer intending to transact immediately can send this PIN to KRA through: email [email protected]\nOr;\nCall 0711099999\nOr;\nSend a Direct Message (DM) via Facebook or Twitter using the offical KRA pages.\nOr;\nVisit the nearest KRA office" } ]
[ { "from": "human", "value": "What to do when the system prompts you to at least have one of the tax obligations." }, { "from": "gpt", "value": "This happens especially in the case of an individual registration.\nJust send this PIN to KRA through:\nemail [email protected] and [email protected]\nOr;\ncall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office and request for the obligation." } ]
[ { "from": "human", "value": "Who should update iPage?" }, { "from": "gpt", "value": "All taxpayers (individuals, companies, parastatals, NGOs, etc) should update their information using the iPage.\nWhen logging for the first time, the initial requirement will be updating iPage." } ]
[ { "from": "human", "value": "Why should I update my iPage?" }, { "from": "gpt", "value": "iTax provides for capture of additional registration data not previously captured. The information required in iTax includes among others your county, employer, cell phone contact, unique email address, tax agent, etc." } ]
[ { "from": "human", "value": "When should I update my iPage?" }, { "from": "gpt", "value": "Taxpayers are required to update their iPage on first log in to iTax." } ]
[ { "from": "human", "value": "Where can I update my iPage?" }, { "from": "gpt", "value": "Go to https://itax.kra.go.ke\nOr;\nVisit the KRA website www.kra.go.ke. Click on Online services and select PIN Registration to access the iTax portal." } ]
[ { "from": "human", "value": "How do I update my iPage?" }, { "from": "gpt", "value": "One is required to fill in the mandatory fields especially under basic information then submit the data so as to update the taxpayers information with KRA." } ]
[ { "from": "human", "value": "What do I do if my PIN is not recognized when I try to update my iPage?" }, { "from": "gpt", "value": "This happens for new PINs that have not been migrated to iTax. The taxpayer is required to send this PIN to KRA for migration through;\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]
[ { "from": "human", "value": "Do I need a VAT certificate if I have a PIN certificate?" }, { "from": "gpt", "value": "No. PIN certificate is sufficient.\nWhat the taxpayer needs to do if they start dealing in vat-able business is to add VAT obligation on the PIN." } ]
[ { "from": "human", "value": "What happens when we try to update iPage and the data is not consistent with the database?" }, { "from": "gpt", "value": "The taxpayer is required to send this PIN to KRA for data correction through;\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]
[ { "from": "human", "value": "I am trying to register but I keep getting error ref. no. 139.....what do I do?" }, { "from": "gpt", "value": "This happens when there is poor internet connectivity.\nSorry, but be patient and keep trying." } ]
[ { "from": "human", "value": "What do I do if I have Error in date of birth or certificate of incorporation?" }, { "from": "gpt", "value": "The taxpayer is required to send this PIN to KRA for data correction through:\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]
[ { "from": "human", "value": "What do I do if Income tax date comes before business commencement date?" }, { "from": "gpt", "value": "The taxpayer is required to send this PIN to KRA for data correction through:\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]
[ { "from": "human", "value": "What is iTax?" }, { "from": "gpt", "value": "iTax is a system that has been developed by KRA to improve on efficiency.\niTax allows you to register for a PIN, file your tax returns, apply for a tax compliance certificate, generate a payment slip, check your ledger account among others." } ]
[ { "from": "human", "value": "How does iTax work?" }, { "from": "gpt", "value": "iTax allows one to update their tax registration details, file tax returns, register all tax payments and make status enquiries with real-time monitoring of their ledger/account." } ]
[ { "from": "human", "value": "How do I access iTax?" }, { "from": "gpt", "value": "To log on to iTax, visit itax.kra.go.ke and follow the prompts." } ]
[ { "from": "human", "value": "I am trying access the portal but I keep getting error ref. no. 148..... What do I do?" }, { "from": "gpt", "value": "This happens when there is network fluctuation. Please be patient and keep trying." } ]
[ { "from": "human", "value": "Does KRA offer training on iTax?" }, { "from": "gpt", "value": "Yes. Training is done free of charge every first two Thursdays of the month at the Convention Centre, 5th floor Times Tower." } ]
[ { "from": "human", "value": "Can I file all returns on iTax?" }, { "from": "gpt", "value": "Yes you can.\nFirst, you need to login into the system then go to the returns tab and select file return and download the return.\nYou need to fill the return offline before you generate a zipped file that you will upload." } ]
[ { "from": "human", "value": "How do I treat Credits from a previous VAT return?" }, { "from": "gpt", "value": "On the VAT return at the Tax Due worksheet, you can be able to put the figure at from the previous months credit." } ]
[ { "from": "human", "value": "If I dont have PINs for my suppliers what should I do?" }, { "from": "gpt", "value": "Invoice without PIN is not valid tax invoice & therefore not allowed for tax deduction." } ]
[ { "from": "human", "value": "How do I treat Credit notes in iTax?" }, { "from": "gpt", "value": "iTax has provided for inclusion of the credit notes in the return. While filling the returns one needs to input a negative figure but quote the invoice relating to the credit note." } ]
[ { "from": "human", "value": "Can I correct an error once I file a return?" }, { "from": "gpt", "value": "Yes.\nYou can do this by filing an amended return." } ]
[ { "from": "human", "value": "I have heard that before one can complete the Excel Return one is required to enable MACROS on the excel sheet. What is enabling MACROS and how does one do this?" }, { "from": "gpt", "value": "MACROS are inbuilt formulae in Excel that should be enabled once you download the return so that you can be able to fill in the details of the return.\nEnabling MACROS is on the read me section of the return and it gives you a step by step guide depending on the Excel version you have." } ]
[ { "from": "human", "value": "My business system produces a lot of data. With the Excel returns I will be required to fill every cell to input my data. This is cumbersome and time consuming. What will you do to facilitate and eliminate this inconvenience?" }, { "from": "gpt", "value": "You can be able to do the returns in Excel and import the information to the return. You need to save this information in CSV (Comma delimited) for further information please contact KRA certified Intermediary agents, or call 020 2390919 and 020 2391099 and 0771628105." } ]
[ { "from": "human", "value": "I have a PIN but have not traded. Do I have to file returns?" }, { "from": "gpt", "value": "Yes you need to file a NIL return.\nAll you need to do is go to your iTax profile, Returns, and select the NIL return option and submit." } ]
[ { "from": "human", "value": "What do I do if I am trying to upload my return but system tells me I have to file returns for previous months/year?" }, { "from": "gpt", "value": "In the case of first time filling you need to call KRA for the change of roll-out date. In the case that you had filled the first return on iTax and failed to file subsequent returns i.e. for one or three months, you need to file the missing returns in iTax before you can file the current one." } ]
[ { "from": "human", "value": "What do I do if I am trying to file VAT/PAYE return on iTax but system tells me I am not registered for that return?" }, { "from": "gpt", "value": "You need to update your tax obligation information in your iTax account to enable you to file." } ]
[ { "from": "human", "value": "Can I view a copy of the previous returns that I have filed for previous tax periods?" }, { "from": "gpt", "value": "Yes. You login to your account, select the returns tab then consult return. You need to select the type of return and the period." } ]
[ { "from": "human", "value": "What is a return of income?" }, { "from": "gpt", "value": "Declarations of all the incomes of a person in the given year of income." } ]
[ { "from": "human", "value": "Are the returns available on iTax?" }, { "from": "gpt", "value": "Yes" } ]
[ { "from": "human", "value": "What income is to be declared?" }, { "from": "gpt", "value": "All taxable income" } ]
[ { "from": "human", "value": "If one does not have income and has a KRA PIN are you required to file a return?" }, { "from": "gpt", "value": "Yes, they are to file NIL returns for the period without income." } ]
[ { "from": "human", "value": "Who is required to submit a KRA tax return?" }, { "from": "gpt", "value": "Any individual who has an active PIN as per the requirements of the registered obligations under the PIN." } ]
[ { "from": "human", "value": "Why does the commissioner not consider removing the requirement of filling of income tax individual returns by employees who have no other source of income?" }, { "from": "gpt", "value": "The income tax individual return is a requirement under section 52 of the income tax act." } ]
[ { "from": "human", "value": "Why does KRA require taxpayers to file income tax individual returns yet the employers had filed the paye retuns?" }, { "from": "gpt", "value": "The employer files PAYE returns to declare taxes deducted from their employees. The employee files The returns to declare their total incomes ie(farming income, business income, employment income, interest, commissions among others)" } ]
[ { "from": "human", "value": "What is a P9?" }, { "from": "gpt", "value": "A summary of The employment income received in The given year,its issued by The employer to employees" } ]
[ { "from": "human", "value": "I am unable to edit the details on my ITR return." }, { "from": "gpt", "value": "Editing of fields for the Income Tax Return, ITR for employment income only has been disabled. If a taxpayer who opts to use this auto populated return notices a discrepancy, they should proceed to file the return using the excel IT1 return." } ]
[ { "from": "human", "value": "Under what circumstances would it be mandatory for me to file the excel IT1 return?" }, { "from": "gpt", "value": "If your employer is not remitting PAYE through iTax like the MDAs(Ministry, Departments and Agencies of government) especially those using IFMIS then the PAYE credits will not be posted to your ledger and hence you should file the IT1 returns using the excel form.\nIf you have a WHT certificate or any other income apart from employment." } ]
[ { "from": "human", "value": "I am not able to reprint my income tax withholding certificates." }, { "from": "gpt", "value": "Retrieve the WHT certificate details from the certificates tab. Reprint WHT certificate- Consult" } ]
[ { "from": "human", "value": "What should a person living with disability indicate as the Certificate Date when filing the IT1 Return?" }, { "from": "gpt", "value": "The date to indicate is dependent on various scenarios.\nIf the exemption certificate was renewed before the period you are filing the IT1 return, use the exemption certificate dates as from 01/01/year to 31/12/year.\nIf the exemption certificate was renewed within the tax period of filing the return the IT1 return can be filed by declaring both the expired one and the renewed exemption certificate." } ]
[ { "from": "human", "value": "What happens to Previous Returns filed by person living with disability whereby the return could not accept Two, 2 Exemption Certificates?" }, { "from": "gpt", "value": "Prior cases can now be amended on iTax to ensure that relief amounts are gotten for a full period as per the Income Tax Act." } ]
[ { "from": "human", "value": "What happens to Previous Returns filed by person living with disability whereby the return could not accept Two, 2 Exemption Certificates?" }, { "from": "gpt", "value": "Prior cases can now be amended on iTax to ensure that relief amounts are gotten for a full period as per the Income Tax Act." } ]
[ { "from": "human", "value": "How do the new tax rates apply when filing PAYE returns?" }, { "from": "gpt", "value": "Depending on the period declared in the basic information the return will apply the relevant rates and reliefs applicable for that period e.g. if you select return period as 01/01/2017 to 31/12/2017 then the return will use the new rates and reliefs as per the Finance Act 2016." } ]
[ { "from": "human", "value": "Can I correct an error once I file a return, amendments?" }, { "from": "gpt", "value": "Yes. You can do this by filing an amended return." } ]
[ { "from": "human", "value": "How does one enable MACROS on the Excel Return?" }, { "from": "gpt", "value": "MACROS are inbuilt formulae in Excel that should be enabled once you download the return so that you can be able to fill in the details of the return. Enable MACROS under File - Options- Trust Center- Trust Center Settings- Macro Settings- Check to enable all macros- Check trust access to the VBA project model." } ]
[ { "from": "human", "value": "Can I view a copy of the previous returns that I have filed?" }, { "from": "gpt", "value": "Yes. Log on to your account, select returns then consult return. You need to indicate the type of return and the period." } ]
[ { "from": "human", "value": "What Corporation Tax incentives do newly listed companies enjoy?" }, { "from": "gpt", "value": "Currently the Income Tax Act does not offer a preferential tax regime for newly listed companies. These provisions were deleted effective 25th April, 2020 by The Tax Laws (Amendment) Act, 2020." } ]
[ { "from": "human", "value": "Are EPZ exempt from Corporation Tax?" }, { "from": "gpt", "value": "Yes.\nAn Export Processing Zone (EPZ) enterprise which does not engage in any commercial activities is exempted from paying any corporation tax for a period of 10 years starting with the year in which production, sales or receipts relating to the activities for which that enterprise has been licensed as an EPZ enterprise commence.\n After the 10th year, the corporation rate of tax will be 25% for the period of 10 years commencing immediately thereafter.\n“Commercial activities” referred to above, include trading in, breaking bulk, grading, repacking, or relabelling of goods and industrial raw materials\nThough exempt from corporation tax, there following are tax obligations that the EPZ enterprise would be liable for during the period in which it is exempt from corporation tax:\n\ti. The enterprise shall be deemed to be a non-resident subject to a non-resident rate of withholding tax on payments made to the enterprise. Where such payments are made by a person who is not an EPZ enterprise, the tax shall be final tax; and\n\tii. Payments by an export processing zone enterprise to any person other than a resident person shall be deemed to be exempted from tax.\n\tiii. The employees and directors, other than non-residents, of an export processing zone enterprise shall be liable to tax on their employment income and the EPZ enterprise employing them will be required to deduct and remit tax from their employment income.\nIt is important to note that for the period an EPZ enterprise is exempt, it will still be required to submit an annual return of income.\nIn the event of failure to submit a return or late submission of a return, the enterprise will be liable to a penalty of two thousand shillings per day for as long as the return remains unfiled. This penalty shall for purposes of provisions relating to the deduction and recovery of the tax be deemed to be tax." } ]
[ { "from": "human", "value": "Do Partnerships pay Corporation Tax?" }, { "from": "gpt", "value": "No.\nPartnerships do not pay corporation tax. Partnership income is declared through the partnership return.\nThe table income is distributed to the individual partners as per the agreed profit sharing ratios.\nThe share of profit then forms part of each individual's partner’s income. It will be added to any other income and the total income taxed accordingly." } ]
[ { "from": "human", "value": "Do self-employed people pay Corporation Tax?" }, { "from": "gpt", "value": "No.\nSelf-employed people and Sole proprietorships are not subject to corporation tax.\nThey are required to declare their total income of the year in the Individual Income Tax Return and pay Income Tax." } ]
[ { "from": "human", "value": "Can I claim my company expenses?" }, { "from": "gpt", "value": "When filing your Corporation Tax Return (also referred to as Income Tax - Company Return) you are only allowed to claim expenses that have been wholly and exclusively incurred in the production of your income as guided in section 15 and 16 of the Income Tax Act, Cap. 470." } ]
[ { "from": "human", "value": "What if I had incurred losses?" }, { "from": "gpt", "value": "A company is allowed to carry forward its losses that will be offset against future taxable income.\nHowever, losses cannot be transferred to a different entity.\nCompanies in the extractive industry e.g. mining, oil and gas industries, are only allowed to carry their losses forward for a period of three years, from the year of income in which the loss arose." } ]
[ { "from": "human", "value": "What if I had incurred losses?" }, { "from": "gpt", "value": "A company is allowed to carry forward its losses that will be offset against future taxable income.\nHowever, losses cannot be transferred to a different entity.\nCompanies in the extractive industry e.g. mining, oil and gas industries, are only allowed to carry their losses forward for a period of three years, from the year of income in which the loss arose." } ]
[ { "from": "human", "value": "Do I need to have an auditor?" }, { "from": "gpt", "value": "Yes.\nYou should ensure that you get a certified auditor, to verify the records used to prepare your financial statements." } ]
[ { "from": "human", "value": "How to account for investment deductions." }, { "from": "gpt", "value": "Buildings (Including Hotels)\n- Building plans and architect's certificates.\n- Bills of quantities\n- Local authority occupation certificates.\n- Factory layout sketches showing the location of machinery.\n- Other supporting documents to support the expenditure incurred e.g. suppliers' invoices, contract documents, certificates of occupation etc.\nPlant and Machinery\n- Suppliers invoices and vouchers.\n- Customs documents where machinery is imported.\n- Clearing and forwarding documents.\n- Documents to support foreign currency transactions.\n- Documents to support cost of installation of machinery.\nNOTE: To make it easier for us to examine the documents, prepare a breakdown of the costs and the relevant supporting documents." } ]
[ { "from": "human", "value": "How to account for dividends and bonuses paid by a cooperative society as allowable deductions." }, { "from": "gpt", "value": "Dividends and bonuses are treated as allowable deductions, against total taxable income.\n- A Society designated co-operative society, other than a designated primary society can pay 100% of total income as dividends to and bonuses to its members.\n- The dividiends are subject to Withholding Tax at the rate of 15%, treated as Qualifying Dividends while bonuses would be subject to PAYE.\n- If a Society dividends and bonuses do not comprise 100% of total taxable income, then the remaining amount is subjected to 30% corporate tax\n- The dividends and bonuses payable cannot exceed 80% 100% of the society’s total income.\n_designated co-operative society_ means a co-operative society registered under the Co-operative Societies Act;\n_primary society_ means a co-operative society registered under the Co-operatives Societies Act whose membership of which is restricted to individual persons.\nDeducting dividends and bonuses from adjusted income only happens if;\n- Payment is made in cash or by cheque to the members.\n- Payment is approved at the AGM by the members of the primary co-op society.\n- Payment is approved by the commissioner of co-op societies." } ]
[ { "from": "human", "value": "What are the prevailing income tax rates?" }, { "from": "gpt", "value": "- On the first Kshs 24,000 per month or Kshs 288,000 per annum\n- On the next Kshs 8,333 per month or Kshs 100,000 per annum\n- On all income amounts in excess of Kshs 32,333 or Kshs 388,000 per annum\nThe applicable monthly personal relief is Kshs. 2,400 per month or Kshs 28,800 per annum." } ]
[ { "from": "human", "value": "Does PAYE include earnings from casual employment?" }, { "from": "gpt", "value": "No.\n'Casual employment' in this case refers to employment that is under one month.\nRegular part-time employees and regular casual employment, where the employees are employed casually but regularly, are not considered to be casual employees." } ]
[ { "from": "human", "value": "Are employee benefits taxable?" }, { "from": "gpt", "value": "Yes.\nWhere an employee enjoys a benefit, advantage or facility of whatsoever nature in connection with employment or services rendered; the value of such benefit should be included in the employee's earnings and charged to tax." } ]
[ { "from": "human", "value": "Tell me about taxation of loans to employees" }, { "from": "gpt", "value": "Sometimes employers provide loans to their employees and charge an interest lower than the prescribed rate. This becomes a benefit to the employee, for which the employer needs to file and pay Fringe Benefit Tax.\nThe difference between the prescribed rate and the employer's loan rate is chargeable to tax, on the employee. The taxable value of fringe benefit tax is the difference between the market interest rate and the actual interest paid on the loan.\nExample:\nKen gets a loan of Kshs. 3,000,000\nLoan amount: Kshs.3,000,000\nInterest charged: 3%\nMarket Interest rate for the month: 9%\nFringe Benefit is (9% - 3% = 6%) = Kshs.3,000,000 x 6% =180,000 p.a\ni.e. Kshs. 15,000 per month.\nFringe Benefit tax payable by employer is Kshs. 15,000 x 30% = Kshs. 4,500/- for the month" } ]
[ { "from": "human", "value": "How are loans to employees taxed?" }, { "from": "gpt", "value": "This is a tax on loans to employees.\nWhen an employer provides a loan to an employee and charges interest below the prescribed rate of interest, then the difference between the prescribed rate and the employer's loan rate is a benefit from employment, that the employee should pay tax for.\nThis is type of tax is called Fringe Benefit Tax" } ]
[ { "from": "human", "value": "What is Withholding Income Tax?" }, { "from": "gpt", "value": "Withholding Income Tax is tax withheld at source. A person making certain payments deducts tax, at the applicable rate, and remits the tax to the Commissioner on behalf of the recipient. Examples of payments subject to withholding tax include, among others: \n\ta. Management, professional or training fees\n\tb.Consultancy fees, Legal fees, Audit fees\n\tc. Contractual fees\n\td. Winnings\n\te. Appearance at or performance to entertain\n\tf. Royalties\n\tg. Interest and deemed interest\n\th. Dividends" } ]
[ { "from": "human", "value": "How does withholding tax work?" }, { "from": "gpt", "value": "The person making the payment deducts tax prior to paying the amount due. The tax withheld/deducted is then remitted to the KRA. The payer is required to generate a withholding tax certificate on iTax which is automatically sent to the payee once the payer remits the withholding tax to KRA. Withholding tax deducted should be remitted to KRA by the 20th day of the month following the month in which the tax was deducted.\nWithholding tax is claimable by the payee when filing their annual tax returns and is not an additional tax" } ]
[ { "from": "human", "value": "What is the penalty for failure to deduct withholding tax?" }, { "from": "gpt", "value": "Where a payer fails to withhold tax, the tax shall be deemed to be due and payable by him as though he was the person who earned the income and the due date for the payment shall be the date on which the amount of tax should have been remitted to KRA.\nA late payment penalty of 5% shall also apply on the tax due together with a late payment interest of 1% per month for the period that the tax remains unpaid." } ]
[ { "from": "human", "value": "Is withholding tax a final tax?" }, { "from": "gpt", "value": "There are a few instances where withholding tax is a final tax.\nWithholding tax is final when deducted in relation to a payment made to a non-resident person with no permanent establishment in Kenya\nWith regard to payments to resident persons, withholding tax is a final tax when it relates to winnings, qualifying interest, qualifying dividend and pensions.\nIn every other case, withholding tax is not a final tax. The taxpayer (payee) is required to declare their income(s) and the withholding tax details when filing their annual tax returns and to pay any balance of tax due." } ]
[ { "from": "human", "value": "Can an employer choose to either pay their staff using the withholding tax or PAYE regime?" }, { "from": "gpt", "value": "Employees are subject to PAYE taxes. The rates applicable are the individual tax (graduated scale) rates and the employer may take into account allowable deductions (such as mortgage interest) and reliefs (such as personal relief and insurance relief) when computing the PAYE." } ]
[ { "from": "human", "value": "What are the withholding tax rates?" }, { "from": "gpt", "value": "Huge table" } ]
[ { "from": "human", "value": "What does a taxpayer require to apply for addition of VAT obligation?" }, { "from": "gpt", "value": "KRA has restricted the addition of VAT obligation and set the following conditions and mandatory documentary requirements for approval of the same;\n1. Original CR12 for companies and Identity documents for directors or individuals including National Identity cards, passports or Alien Identity Cards;\n2. Business permit from relevant bodies;\n3. Work permits for aliens;\n4. Tax Compliance Certificates for all directors;\n5. Letter of appointment of Tax Representative for non-resident companies and identity documents of directors for companies with non-resident directors;\n6. Contact details including physical address, verified telephone contacts, email addresses, utility meter numbers and documents, office rent agreements;\n7. The website(s) or uniform resource locators (URLs) of the supplier through which business is conducted, where applicable;\n8. Contract agreements and/or sample invoices;\n A Taxpayer who meets the above requirements can proceed to make an application for addition of VAT obligation." } ]
[ { "from": "human", "value": "What is VAT Special Table?" }, { "from": "gpt", "value": "It is a mechanism implemented in iTax to enhance VAT compliance where certain categories of VAT registered taxpayers are restricted from performing certain processes. The following are categories so far on boarded on the special table:\nNil filers and Non-filers – This refers to Taxpayers who have either not filed returns or have consecutively filed NIL returns for a specified period.\n Missing Traders – This refers to taxpayers who are filing and paying VAT but on investigation were found to be involved in VAT fraud relating to ‘missing trader’ schemes " } ]
[ { "from": "human", "value": "As an individual/organization should I pay VAT and income tax as well?" }, { "from": "gpt", "value": "Income tax is a compulsory tax obligation whereas, for VAT, you pay for it when you are registered with VAT." } ]
[ { "from": "human", "value": "What are the benefits of the VAT Special Table?" }, { "from": "gpt", "value": "The VAT special table bears the following benefits for traders:\n1. Identify erroneously added VAT obligations or VAT obligations that are no longer required.\n2. Reduces cases of abuse of traders PIN by fraudulent persons\n3. Assist traders to conduct business with compliant suppliers" } ]
[ { "from": "human", "value": "What happens when a Taxpayer is on-boarded on the VAT Special Table?" }, { "from": "gpt", "value": "1. The taxpayer on-boarded on the VAT Special Table will be restricted from filling VAT returns. Upon attempting to file the return, the system will display the message: “This PIN is currently under review for VAT compliance irregularities. Please contact nearest KRA office.”\nNote : Penalties will not be charged for non-filling of VAT returns as a result of on boarding of a taxpayer on the VAT special table.\n2. Traders cannot claim input tax from taxpayers’ on boarded on the special table. Upon upload of an original or amended VAT return that contains the PIN of a taxpayer who is in the special table, the entry will be rejected by the system and the following message displayed: “This PIN is not liable to input tax deduction”.\nThe affected taxpayers will be required to contact their Tax Service Office for guidance on removal from the VAT Special Table." } ]
[ { "from": "human", "value": "How do I calculate VAT" }, { "from": "gpt", "value": "VAT operates on an Input - answer Principle. A registered person should maintain a record of his sales and purchases for a tax period.\nInput tax refers to VAT charged on purchases of taxable purchases and expenses for business purposes.\nanswer tax refers to the VAT charged on the sales of taxable goods or services.\nTax payable is the difference between the answer tax and the Input tax.\nanswer Tax - Input Tax = VAT Payable\n If positive, tax due is payable on or before the 20th of the following month." } ]
[ { "from": "human", "value": "What is exempt from Withholding Tax?" }, { "from": "gpt", "value": "- Dividends received by a company resident in Kenya from a local subsidiary or associated company in which it controls (directly or indirectly) 12.5% or more of the voting power.\n- Marketing commissions and residue audit fees paid to foreign agents in respect of export of flowers, fruits and vegetables.\n- Interest payments to banks and insurance companies.\n- Payments made to tax exempt bodies.\n- Local management and professional fees whose aggregate is below Ksh 24,000 in a month.\n- Air travel commissions paid by local air operators to overseas agents." } ]
[ { "from": "human", "value": "What is Withholding Income Tax and what type of transactions does it apply to?" }, { "from": "gpt", "value": "Withholding Income Tax is tax withheld at source. A person making certain payments deducts tax, at the applicable rate, and remits the tax to the Commissioner on behalf of the recipient. Examples of payments subject to withholding tax include, among others: \n- Management, professional or training fees\n- Consultancy fees, Legal fees, Audit fees\n- Contractual fees\n- Winnings\n- Appearance at or performance to entertain\n- Royalties\n- Interest and deemed interest\n- Dividends" } ]
[ { "from": "human", "value": "Can an employer choose to either pay their staff using the withholding tax or PAYE regime?" }, { "from": "gpt", "value": "Employees are subject to PAYE taxes. The rates applicable are the individual tax (graduated scale) rates and the employer may take into account allowable deductions (such as mortgage interest) and reliefs (such as personal relief and insurance relief) when computing the PAYE." } ]
[ { "from": "human", "value": "What is Turnover Tax (TOT)?" }, { "from": "gpt", "value": "Turnover Tax (TOT) is a tax charged on gross sales of a business as per Sec.12 (c) of the Income Tax Act. The tax is payable by resident persons whose gross turnover is more than Ksh 1,000,000 but less than Ksh 50,000,000 in any given year." } ]
[ { "from": "human", "value": "What is the effective date of TOT?" }, { "from": "gpt", "value": "1st January 2020" } ]
[ { "from": "human", "value": "What is the rate of TOT and the due date for filing and paying?" }, { "from": "gpt", "value": "Turnover Tax is charged at the rate of 1% on gross sales. The due date for filing and paying TOT is on the 20th day of the following month." } ]
[ { "from": "human", "value": "Does the levying of Turnover Tax and Presumptive Tax amount to double taxation?" }, { "from": "gpt", "value": "No. Presumptive tax is an advance tax that shall be deducted from Turnover Tax payable in the subsequent month(s).\nHowever, Presumptive Tax was repealed(wef 25.04.2020)." } ]
[ { "from": "human", "value": "Are there any exemptions under Turnover Tax?" }, { "from": "gpt", "value": "Income exempt from TOT include;\n- Persons with business income below Ksh 1,000,000 and above Ksh. 50,000,000\nEmployment income,\nRental income,\nManagement and professional services.\nAny income subject to final withholding tax" } ]
[ { "from": "human", "value": "Can a taxpayer choose not to be subject to Turnover Tax?" }, { "from": "gpt", "value": "Taxpayers who are eligible for Turnover Tax may opt to be under the provisions of this tax by writing to the Commissioner of Domestic Taxes. However this is subject to approval." } ]

[ { "from": "human", "value": "Can I appoint a representative to onboard me on eTIMS?" }, { "from": "gpt", "value": "Yes.\nYou can appoint a suitable representative to sign up and install the eTIMS solution on your behalf.\nThe following is required:\n\ti. An introductory letter, signed by at least one of the directors or partner or business owner clearly indicating who has been appointed as the tax representative and their role in the business. Include your contact information, in case a KRA official will need to contact you.\n\tii. The director(s) or partner(s) or owner of the business should fill in and sign the eTIMS Acknowledgement & Commitment Form\n\tiii. Copy of the director's/partner’s/owner’s national ID.\n\tiv. Copy of CR12 form for companies or Partnership Deed for Partnerships.\nThe above documents should be uploaded by the representative on the eTIMS portal." } ]

[ { "from": "human", "value": "Where can I get more information about eTIMS?" }, { "from": "gpt", "value": "You can ask me any question about eTims and I will be able to answer you. What do you want to know?\nAlternatively, You can either:\n\ti. Visit the KRA website and access the eTIMS menu\n\tii. Send a Direct Message (DM) via Facebook or Twitter using the official KRA pages.\n\tiii. Visit the nearest KRA office" } ]

[ { "from": "human", "value": "What are the Solutions available on eTIMS?" }, { "from": "gpt", "value": "The solutions available include:\n1. eTIMS Lite (Web) - Web based solution accessible through eCitizen. This solution is for businesses with minimal transactions.\n2. eTIMS Lite (USSD) - Accessed through the short code *222#. This solution is for individuals and sole proprietors.\n3. Online Portal- Tailored for taxpayers in the service sector exclusively, where no goods are supplied.\n4. eTIMS Client – A downloadable software designed for taxpayers dealing in goods or both goods and services. The software supports multiple branches and pay points/cashier tills.\n5. Virtual Sales Control Unit (VSCU) – This solution enables seamless system-to-system integration between the taxpayer’s invoicing/ERP system and eTIMS, catering to taxpayers with extensive transactions or bulk invoicing.\n6. Online Sales Control Unit (OSCU) – This solution also facilitates system-to-system integration between the taxpayer’s invoicing/ERP system and eTIMS. It is ideal for taxpayers using an online invoicing system." } ]

[ { "from": "human", "value": "How can I contact eTims?" }, { "from": "gpt", "value": "You can contact eTims through the following channels:\nEmail: [email protected]\nPhone Numbers:\n1. 0709 016 995\n2. 0709 017 719\n3. 0709 017 731\n4. 0709 017 718\n5. 0709 017 724\n6. 0709 017 735" } ]

[ { "from": "human", "value": "How to generate invoices using eTims?" }, { "from": "gpt", "value": "Step 1: After successfully initializing your eCitizen eTIMS account click on Sales to raise an invoice\nStep 2: Click Invoice\nStep 3: Start by selecting whether it’s a Business to Business or Business to Customer transaction. Thereafter you can upload your logo (optional).\nStep 4: Create a customer or select the customer if they already exist. To create a customer simply click the Add New button.\nStep 5: If it is a valid KRA PIN the details of the customer will appear. Click on Add to add the customer to your list of customers\nStep 6: Once the customer is added to the list, select the customer you are invoicing. The details of the customer will appear automatically.\nStep 7: Confirm that the tax type is D (Non-VAT). You can add a note (optional) and also input the Due date\nStep 8: Click on the Add Item button to add an item\nStep 9: Input the item details i.e. the product/service, description, unit cost and quantity then click Add\nStep 10: A summary of the items will be displayed as follows to confirm if the details are in order\nStep 11: You can include any terms and conditions that you would like your customer to see and know and finally select the payment method\nStep 12: Once you have confirmed that all the invoice details are in order, scroll back up and save your invoice. NB: You can either save and download the invoice using the Save button or save and send the invoice to your client via email using the Save And Send button." } ]

[ { "from": "human", "value": "How can I change the current email address from the one I registered with in iTax?" }, { "from": "gpt", "value": "Change of email address can be initiated by the taxpayer. On the taxpayers profile under registration, the taxpayer is allowed to amend PIN details.\nOnce the process is initiated by the taxpayer, a task is created for approval by a KRA officer." } ]

[ { "from": "human", "value": "In case I forget my password what can I do?" }, { "from": "gpt", "value": "Go to the iTax log in page and select forgotten password. You will be asked for the security question you used when registering for the first time. Once you submit the information successfully, new log in credentials will be sent to your registered email address." } ]

[ { "from": "human", "value": "How can I change my password if I have forgotten my security question?" }, { "from": "gpt", "value": "The taxpayer is required to send this PIN to KRA for password and security question reset through:\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]

[ { "from": "human", "value": "What do I do if my Pin is locked?" }, { "from": "gpt", "value": "All blocked password are reset automatically within 24 hours.\nAlternatively the taxpayer is can send this PIN to KRA to be unlocked reset through:\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]

[ { "from": "human", "value": "At what age does one obtain a KRA PIN?" }, { "from": "gpt", "value": "A PIN is issued upon acquisition of valid identification documents (e.g ID card)" } ]

[ { "from": "human", "value": "What is the requirement for one to obtain a KRA PIN?" }, { "from": "gpt", "value": "Valid identification documents (National ID card for residents, Alien ID for non-Kenyan residents, Certificates of registrations for non-individuals)" } ]

[ { "from": "human", "value": "What should I do if I forget my password?" }, { "from": "gpt", "value": "Go to the iTax log in page and click on forgot password link, answer the security stamp arithmetic and new log in credentials will be sent to your registered email address." } ]

[ { "from": "human", "value": "How can I change the current email and physical address information on iTax?" }, { "from": "gpt", "value": "Change of email address can be initiated form the iTax profile, under Registration- Amend PIN details. Once the process is initiated by the taxpayer, a task is created for approval by a KRA officer." } ]

[ { "from": "human", "value": "How can limited partnerships whose partners are non individuals register for PINs on iTax?" }, { "from": "gpt", "value": "Select Business Type as Others and Business Sub Type as Partnerships. Capture the partners PIN under the Directors/Associates. Enter the profit sharing ratio and click on the ADD button, and proceed to add the second PIN.\nNOTE: At the moment, this is only workable for new registrations but not iPage update." } ]

[ { "from": "human", "value": "My PIN has been stopped on iTax. What should I do?" }, { "from": "gpt", "value": "Kindly contact your tax station for clarification on this." } ]

[ { "from": "human", "value": "My name has been wrongly spelled in iTax" }, { "from": "gpt", "value": "The taxpayer is required to send his PIN together with scan colored copies of his original ID card or certificate of incorporation for data correction through the email [email protected]" } ]

[ { "from": "human", "value": "I am a Non- Kenyan Non- Resident whose name was captured wrongly on iTax. Is there a way to correct this?" }, { "from": "gpt", "value": "We currently do not have an amendment function for names for those PINs linked to passports." } ]

[ { "from": "human", "value": "What do I do after registering and can see only two icons (change password and logout)?" }, { "from": "gpt", "value": "Normally a taxpayers profile will be fully populated will all icons within 24 hours upon registration. However a taxpayer intending to transact immediately can send this PIN to KRA through: email [email protected]\nOr;\nCall 0711099999\nOr;\nSend a Direct Message (DM) via Facebook or Twitter using the offical KRA pages.\nOr;\nVisit the nearest KRA office" } ]

[ { "from": "human", "value": "What to do when the system prompts you to at least have one of the tax obligations." }, { "from": "gpt", "value": "This happens especially in the case of an individual registration.\nJust send this PIN to KRA through:\nemail [email protected] and [email protected]\nOr;\ncall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office and request for the obligation." } ]

[ { "from": "human", "value": "Who should update iPage?" }, { "from": "gpt", "value": "All taxpayers (individuals, companies, parastatals, NGOs, etc) should update their information using the iPage.\nWhen logging for the first time, the initial requirement will be updating iPage." } ]

[ { "from": "human", "value": "Why should I update my iPage?" }, { "from": "gpt", "value": "iTax provides for capture of additional registration data not previously captured. The information required in iTax includes among others your county, employer, cell phone contact, unique email address, tax agent, etc." } ]

[ { "from": "human", "value": "When should I update my iPage?" }, { "from": "gpt", "value": "Taxpayers are required to update their iPage on first log in to iTax." } ]

[ { "from": "human", "value": "Where can I update my iPage?" }, { "from": "gpt", "value": "Go to https://itax.kra.go.ke\nOr;\nVisit the KRA website www.kra.go.ke. Click on Online services and select PIN Registration to access the iTax portal." } ]

[ { "from": "human", "value": "How do I update my iPage?" }, { "from": "gpt", "value": "One is required to fill in the mandatory fields especially under basic information then submit the data so as to update the taxpayers information with KRA." } ]

[ { "from": "human", "value": "What do I do if my PIN is not recognized when I try to update my iPage?" }, { "from": "gpt", "value": "This happens for new PINs that have not been migrated to iTax. The taxpayer is required to send this PIN to KRA for migration through;\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]

[ { "from": "human", "value": "Do I need a VAT certificate if I have a PIN certificate?" }, { "from": "gpt", "value": "No. PIN certificate is sufficient.\nWhat the taxpayer needs to do if they start dealing in vat-able business is to add VAT obligation on the PIN." } ]

[ { "from": "human", "value": "What happens when we try to update iPage and the data is not consistent with the database?" }, { "from": "gpt", "value": "The taxpayer is required to send this PIN to KRA for data correction through;\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]

[ { "from": "human", "value": "I am trying to register but I keep getting error ref. no. 139.....what do I do?" }, { "from": "gpt", "value": "This happens when there is poor internet connectivity.\nSorry, but be patient and keep trying." } ]

[ { "from": "human", "value": "What do I do if I have Error in date of birth or certificate of incorporation?" }, { "from": "gpt", "value": "The taxpayer is required to send this PIN to KRA for data correction through:\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]

[ { "from": "human", "value": "What do I do if Income tax date comes before business commencement date?" }, { "from": "gpt", "value": "The taxpayer is required to send this PIN to KRA for data correction through:\nEmail [email protected] and [email protected]\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office." } ]

[ { "from": "human", "value": "What is iTax?" }, { "from": "gpt", "value": "iTax is a system that has been developed by KRA to improve on efficiency.\niTax allows you to register for a PIN, file your tax returns, apply for a tax compliance certificate, generate a payment slip, check your ledger account among others." } ]

[ { "from": "human", "value": "How does iTax work?" }, { "from": "gpt", "value": "iTax allows one to update their tax registration details, file tax returns, register all tax payments and make status enquiries with real-time monitoring of their ledger/account." } ]

[ { "from": "human", "value": "How do I access iTax?" }, { "from": "gpt", "value": "To log on to iTax, visit itax.kra.go.ke and follow the prompts." } ]

[ { "from": "human", "value": "I am trying access the portal but I keep getting error ref. no. 148..... What do I do?" }, { "from": "gpt", "value": "This happens when there is network fluctuation. Please be patient and keep trying." } ]

[ { "from": "human", "value": "Does KRA offer training on iTax?" }, { "from": "gpt", "value": "Yes. Training is done free of charge every first two Thursdays of the month at the Convention Centre, 5th floor Times Tower." } ]

[ { "from": "human", "value": "Can I file all returns on iTax?" }, { "from": "gpt", "value": "Yes you can.\nFirst, you need to login into the system then go to the returns tab and select file return and download the return.\nYou need to fill the return offline before you generate a zipped file that you will upload." } ]

[ { "from": "human", "value": "How do I treat Credits from a previous VAT return?" }, { "from": "gpt", "value": "On the VAT return at the Tax Due worksheet, you can be able to put the figure at from the previous months credit." } ]

[ { "from": "human", "value": "If I dont have PINs for my suppliers what should I do?" }, { "from": "gpt", "value": "Invoice without PIN is not valid tax invoice & therefore not allowed for tax deduction." } ]

[ { "from": "human", "value": "How do I treat Credit notes in iTax?" }, { "from": "gpt", "value": "iTax has provided for inclusion of the credit notes in the return. While filling the returns one needs to input a negative figure but quote the invoice relating to the credit note." } ]

[ { "from": "human", "value": "Can I correct an error once I file a return?" }, { "from": "gpt", "value": "Yes.\nYou can do this by filing an amended return." } ]

[ { "from": "human", "value": "I have heard that before one can complete the Excel Return one is required to enable MACROS on the excel sheet. What is enabling MACROS and how does one do this?" }, { "from": "gpt", "value": "MACROS are inbuilt formulae in Excel that should be enabled once you download the return so that you can be able to fill in the details of the return.\nEnabling MACROS is on the read me section of the return and it gives you a step by step guide depending on the Excel version you have." } ]

[ { "from": "human", "value": "My business system produces a lot of data. With the Excel returns I will be required to fill every cell to input my data. This is cumbersome and time consuming. What will you do to facilitate and eliminate this inconvenience?" }, { "from": "gpt", "value": "You can be able to do the returns in Excel and import the information to the return. You need to save this information in CSV (Comma delimited) for further information please contact KRA certified Intermediary agents, or call 020 2390919 and 020 2391099 and 0771628105." } ]

[ { "from": "human", "value": "I have a PIN but have not traded. Do I have to file returns?" }, { "from": "gpt", "value": "Yes you need to file a NIL return.\nAll you need to do is go to your iTax profile, Returns, and select the NIL return option and submit." } ]

[ { "from": "human", "value": "What do I do if I am trying to upload my return but system tells me I have to file returns for previous months/year?" }, { "from": "gpt", "value": "In the case of first time filling you need to call KRA for the change of roll-out date. In the case that you had filled the first return on iTax and failed to file subsequent returns i.e. for one or three months, you need to file the missing returns in iTax before you can file the current one." } ]

[ { "from": "human", "value": "What do I do if I am trying to file VAT/PAYE return on iTax but system tells me I am not registered for that return?" }, { "from": "gpt", "value": "You need to update your tax obligation information in your iTax account to enable you to file." } ]

[ { "from": "human", "value": "Can I view a copy of the previous returns that I have filed for previous tax periods?" }, { "from": "gpt", "value": "Yes. You login to your account, select the returns tab then consult return. You need to select the type of return and the period." } ]

[ { "from": "human", "value": "What is a return of income?" }, { "from": "gpt", "value": "Declarations of all the incomes of a person in the given year of income." } ]

[ { "from": "human", "value": "Are the returns available on iTax?" }, { "from": "gpt", "value": "Yes" } ]

[ { "from": "human", "value": "What income is to be declared?" }, { "from": "gpt", "value": "All taxable income" } ]

[ { "from": "human", "value": "If one does not have income and has a KRA PIN are you required to file a return?" }, { "from": "gpt", "value": "Yes, they are to file NIL returns for the period without income." } ]

[ { "from": "human", "value": "Who is required to submit a KRA tax return?" }, { "from": "gpt", "value": "Any individual who has an active PIN as per the requirements of the registered obligations under the PIN." } ]

[ { "from": "human", "value": "Why does the commissioner not consider removing the requirement of filling of income tax individual returns by employees who have no other source of income?" }, { "from": "gpt", "value": "The income tax individual return is a requirement under section 52 of the income tax act." } ]

[ { "from": "human", "value": "Why does KRA require taxpayers to file income tax individual returns yet the employers had filed the paye retuns?" }, { "from": "gpt", "value": "The employer files PAYE returns to declare taxes deducted from their employees. The employee files The returns to declare their total incomes ie(farming income, business income, employment income, interest, commissions among others)" } ]

[ { "from": "human", "value": "What is a P9?" }, { "from": "gpt", "value": "A summary of The employment income received in The given year,its issued by The employer to employees" } ]

[ { "from": "human", "value": "I am unable to edit the details on my ITR return." }, { "from": "gpt", "value": "Editing of fields for the Income Tax Return, ITR for employment income only has been disabled. If a taxpayer who opts to use this auto populated return notices a discrepancy, they should proceed to file the return using the excel IT1 return." } ]

[ { "from": "human", "value": "Under what circumstances would it be mandatory for me to file the excel IT1 return?" }, { "from": "gpt", "value": "If your employer is not remitting PAYE through iTax like the MDAs(Ministry, Departments and Agencies of government) especially those using IFMIS then the PAYE credits will not be posted to your ledger and hence you should file the IT1 returns using the excel form.\nIf you have a WHT certificate or any other income apart from employment." } ]

[ { "from": "human", "value": "I am not able to reprint my income tax withholding certificates." }, { "from": "gpt", "value": "Retrieve the WHT certificate details from the certificates tab. Reprint WHT certificate- Consult" } ]

[ { "from": "human", "value": "What should a person living with disability indicate as the Certificate Date when filing the IT1 Return?" }, { "from": "gpt", "value": "The date to indicate is dependent on various scenarios.\nIf the exemption certificate was renewed before the period you are filing the IT1 return, use the exemption certificate dates as from 01/01/year to 31/12/year.\nIf the exemption certificate was renewed within the tax period of filing the return the IT1 return can be filed by declaring both the expired one and the renewed exemption certificate." } ]

[ { "from": "human", "value": "What happens to Previous Returns filed by person living with disability whereby the return could not accept Two, 2 Exemption Certificates?" }, { "from": "gpt", "value": "Prior cases can now be amended on iTax to ensure that relief amounts are gotten for a full period as per the Income Tax Act." } ]

[ { "from": "human", "value": "How do the new tax rates apply when filing PAYE returns?" }, { "from": "gpt", "value": "Depending on the period declared in the basic information the return will apply the relevant rates and reliefs applicable for that period e.g. if you select return period as 01/01/2017 to 31/12/2017 then the return will use the new rates and reliefs as per the Finance Act 2016." } ]

[ { "from": "human", "value": "Can I correct an error once I file a return, amendments?" }, { "from": "gpt", "value": "Yes. You can do this by filing an amended return." } ]

[ { "from": "human", "value": "How does one enable MACROS on the Excel Return?" }, { "from": "gpt", "value": "MACROS are inbuilt formulae in Excel that should be enabled once you download the return so that you can be able to fill in the details of the return. Enable MACROS under File - Options- Trust Center- Trust Center Settings- Macro Settings- Check to enable all macros- Check trust access to the VBA project model." } ]

[ { "from": "human", "value": "Can I view a copy of the previous returns that I have filed?" }, { "from": "gpt", "value": "Yes. Log on to your account, select returns then consult return. You need to indicate the type of return and the period." } ]

[ { "from": "human", "value": "What Corporation Tax incentives do newly listed companies enjoy?" }, { "from": "gpt", "value": "Currently the Income Tax Act does not offer a preferential tax regime for newly listed companies. These provisions were deleted effective 25th April, 2020 by The Tax Laws (Amendment) Act, 2020." } ]

[ { "from": "human", "value": "Are EPZ exempt from Corporation Tax?" }, { "from": "gpt", "value": "Yes.\nAn Export Processing Zone (EPZ) enterprise which does not engage in any commercial activities is exempted from paying any corporation tax for a period of 10 years starting with the year in which production, sales or receipts relating to the activities for which that enterprise has been licensed as an EPZ enterprise commence.\n After the 10th year, the corporation rate of tax will be 25% for the period of 10 years commencing immediately thereafter.\n“Commercial activities” referred to above, include trading in, breaking bulk, grading, repacking, or relabelling of goods and industrial raw materials\nThough exempt from corporation tax, there following are tax obligations that the EPZ enterprise would be liable for during the period in which it is exempt from corporation tax:\n\ti. The enterprise shall be deemed to be a non-resident subject to a non-resident rate of withholding tax on payments made to the enterprise. Where such payments are made by a person who is not an EPZ enterprise, the tax shall be final tax; and\n\tii. Payments by an export processing zone enterprise to any person other than a resident person shall be deemed to be exempted from tax.\n\tiii. The employees and directors, other than non-residents, of an export processing zone enterprise shall be liable to tax on their employment income and the EPZ enterprise employing them will be required to deduct and remit tax from their employment income.\nIt is important to note that for the period an EPZ enterprise is exempt, it will still be required to submit an annual return of income.\nIn the event of failure to submit a return or late submission of a return, the enterprise will be liable to a penalty of two thousand shillings per day for as long as the return remains unfiled. This penalty shall for purposes of provisions relating to the deduction and recovery of the tax be deemed to be tax." } ]

[ { "from": "human", "value": "Do Partnerships pay Corporation Tax?" }, { "from": "gpt", "value": "No.\nPartnerships do not pay corporation tax. Partnership income is declared through the partnership return.\nThe table income is distributed to the individual partners as per the agreed profit sharing ratios.\nThe share of profit then forms part of each individual's partner’s income. It will be added to any other income and the total income taxed accordingly." } ]

[ { "from": "human", "value": "Do self-employed people pay Corporation Tax?" }, { "from": "gpt", "value": "No.\nSelf-employed people and Sole proprietorships are not subject to corporation tax.\nThey are required to declare their total income of the year in the Individual Income Tax Return and pay Income Tax." } ]

[ { "from": "human", "value": "Can I claim my company expenses?" }, { "from": "gpt", "value": "When filing your Corporation Tax Return (also referred to as Income Tax - Company Return) you are only allowed to claim expenses that have been wholly and exclusively incurred in the production of your income as guided in section 15 and 16 of the Income Tax Act, Cap. 470." } ]

[ { "from": "human", "value": "What if I had incurred losses?" }, { "from": "gpt", "value": "A company is allowed to carry forward its losses that will be offset against future taxable income.\nHowever, losses cannot be transferred to a different entity.\nCompanies in the extractive industry e.g. mining, oil and gas industries, are only allowed to carry their losses forward for a period of three years, from the year of income in which the loss arose." } ]

[ { "from": "human", "value": "Do I need to have an auditor?" }, { "from": "gpt", "value": "Yes.\nYou should ensure that you get a certified auditor, to verify the records used to prepare your financial statements." } ]

[ { "from": "human", "value": "How to account for investment deductions." }, { "from": "gpt", "value": "*Buildings (Including Hotels)*\n- Building plans and architect's certificates.\n- Bills of quantities\n- Local authority occupation certificates.\n- Factory layout sketches showing the location of machinery.\n- Other supporting documents to support the expenditure incurred e.g. suppliers' invoices, contract documents, certificates of occupation etc.\n*Plant and Machinery*\n- Suppliers invoices and vouchers.\n- Customs documents where machinery is imported.\n- Clearing and forwarding documents.\n- Documents to support foreign currency transactions.\n- Documents to support cost of installation of machinery.\n*NOTE:* To make it easier for us to examine the documents, prepare a breakdown of the costs and the relevant supporting documents." } ]

[ { "from": "human", "value": "How to account for dividends and bonuses paid by a cooperative society as allowable deductions." }, { "from": "gpt", "value": "Dividends and bonuses are treated as allowable deductions, against total taxable income.\n- A Society designated co-operative society, other than a designated primary society can pay 100% of total income as dividends to and bonuses to its members.\n- The dividiends are subject to Withholding Tax at the rate of 15%, treated as Qualifying Dividends while bonuses would be subject to PAYE.\n- If a Society dividends and bonuses do not comprise 100% of total taxable income, then the remaining amount is subjected to 30% corporate tax\n- The dividends and bonuses payable cannot exceed 80% 100% of the society’s total income.\n_designated co-operative society_ means a co-operative society registered under the Co-operative Societies Act;\n_primary society_ means a co-operative society registered under the Co-operatives Societies Act whose membership of which is restricted to individual persons.\nDeducting dividends and bonuses from adjusted income only happens if;\n- Payment is made in cash or by cheque to the members.\n- Payment is approved at the AGM by the members of the primary co-op society.\n- Payment is approved by the commissioner of co-op societies." } ]

[ { "from": "human", "value": "What are the prevailing income tax rates?" }, { "from": "gpt", "value": "- On the first Kshs 24,000 per month or Kshs 288,000 per annum\n- On the next Kshs 8,333 per month or Kshs 100,000 per annum\n- On all income amounts in excess of Kshs 32,333 or Kshs 388,000 per annum\nThe applicable monthly personal relief is Kshs. 2,400 per month or Kshs 28,800 per annum." } ]

[ { "from": "human", "value": "Does PAYE include earnings from casual employment?" }, { "from": "gpt", "value": "No.\n'Casual employment' in this case refers to employment that is under one month.\nRegular part-time employees and regular casual employment, where the employees are employed casually but regularly, are not considered to be casual employees." } ]

[ { "from": "human", "value": "Are employee benefits taxable?" }, { "from": "gpt", "value": "Yes.\nWhere an employee enjoys a benefit, advantage or facility of whatsoever nature in connection with employment or services rendered; the value of such benefit should be included in the employee's earnings and charged to tax." } ]

[ { "from": "human", "value": "Tell me about taxation of loans to employees" }, { "from": "gpt", "value": "Sometimes employers provide loans to their employees and charge an interest lower than the prescribed rate. This becomes a benefit to the employee, for which the employer needs to file and pay Fringe Benefit Tax.\nThe difference between the prescribed rate and the employer's loan rate is chargeable to tax, on the employee. The taxable value of fringe benefit tax is the difference between the market interest rate and the actual interest paid on the loan.\nExample:\nKen gets a loan of Kshs. 3,000,000\nLoan amount: Kshs.3,000,000\nInterest charged: 3%\nMarket Interest rate for the month: 9%\nFringe Benefit is (9% - 3% = 6%) = Kshs.3,000,000 x 6% =180,000 p.a\ni.e. Kshs. 15,000 per month.\nFringe Benefit tax payable by employer is Kshs. 15,000 x 30% = Kshs. 4,500/- for the month" } ]

[ { "from": "human", "value": "How are loans to employees taxed?" }, { "from": "gpt", "value": "This is a tax on loans to employees.\nWhen an employer provides a loan to an employee and charges interest below the prescribed rate of interest, then the difference between the prescribed rate and the employer's loan rate is a benefit from employment, that the employee should pay tax for.\nThis is type of tax is called Fringe Benefit Tax" } ]

[ { "from": "human", "value": "What is Withholding Income Tax?" }, { "from": "gpt", "value": "Withholding Income Tax is tax withheld at source. A person making certain payments deducts tax, at the applicable rate, and remits the tax to the Commissioner on behalf of the recipient. Examples of payments subject to withholding tax include, among others: \n\ta. Management, professional or training fees\n\tb.Consultancy fees, Legal fees, Audit fees\n\tc. Contractual fees\n\td. Winnings\n\te. Appearance at or performance to entertain\n\tf. Royalties\n\tg. Interest and deemed interest\n\th. Dividends" } ]

[ { "from": "human", "value": "How does withholding tax work?" }, { "from": "gpt", "value": "The person making the payment deducts tax prior to paying the amount due. The tax withheld/deducted is then remitted to the KRA. The payer is required to generate a withholding tax certificate on iTax which is automatically sent to the payee once the payer remits the withholding tax to KRA. Withholding tax deducted should be remitted to KRA by the 20th day of the month following the month in which the tax was deducted.\nWithholding tax is claimable by the payee when filing their annual tax returns and is not an additional tax" } ]

[ { "from": "human", "value": "What is the penalty for failure to deduct withholding tax?" }, { "from": "gpt", "value": "Where a payer fails to withhold tax, the tax shall be deemed to be due and payable by him as though he was the person who earned the income and the due date for the payment shall be the date on which the amount of tax should have been remitted to KRA.\nA late payment penalty of 5% shall also apply on the tax due together with a late payment interest of 1% per month for the period that the tax remains unpaid." } ]

[ { "from": "human", "value": "Is withholding tax a final tax?" }, { "from": "gpt", "value": "There are a few instances where withholding tax is a final tax.\nWithholding tax is final when deducted in relation to a payment made to a non-resident person with no permanent establishment in Kenya\nWith regard to payments to resident persons, withholding tax is a final tax when it relates to winnings, qualifying interest, qualifying dividend and pensions.\nIn every other case, withholding tax is not a final tax. The taxpayer (payee) is required to declare their income(s) and the withholding tax details when filing their annual tax returns and to pay any balance of tax due." } ]

[ { "from": "human", "value": "Can an employer choose to either pay their staff using the withholding tax or PAYE regime?" }, { "from": "gpt", "value": "Employees are subject to PAYE taxes. The rates applicable are the individual tax (graduated scale) rates and the employer may take into account allowable deductions (such as mortgage interest) and reliefs (such as personal relief and insurance relief) when computing the PAYE." } ]

[ { "from": "human", "value": "What are the withholding tax rates?" }, { "from": "gpt", "value": "Huge table" } ]

[ { "from": "human", "value": "What does a taxpayer require to apply for addition of VAT obligation?" }, { "from": "gpt", "value": "KRA has restricted the addition of VAT obligation and set the following conditions and mandatory documentary requirements for approval of the same;\n1. Original CR12 for companies and Identity documents for directors or individuals including National Identity cards, passports or Alien Identity Cards;\n2. Business permit from relevant bodies;\n3. Work permits for aliens;\n4. Tax Compliance Certificates for all directors;\n5. Letter of appointment of Tax Representative for non-resident companies and identity documents of directors for companies with non-resident directors;\n6. Contact details including physical address, verified telephone contacts, email addresses, utility meter numbers and documents, office rent agreements;\n7. The website(s) or uniform resource locators (URLs) of the supplier through which business is conducted, where applicable;\n8. Contract agreements and/or sample invoices;\n A Taxpayer who meets the above requirements can proceed to make an application for addition of VAT obligation." } ]

[ { "from": "human", "value": "What is VAT Special Table?" }, { "from": "gpt", "value": "It is a mechanism implemented in iTax to enhance VAT compliance where certain categories of VAT registered taxpayers are restricted from performing certain processes. The following are categories so far on boarded on the special table:\nNil filers and Non-filers – This refers to Taxpayers who have either not filed returns or have consecutively filed NIL returns for a specified period.\n Missing Traders – This refers to taxpayers who are filing and paying VAT but on investigation were found to be involved in VAT fraud relating to ‘missing trader’ schemes " } ]

[ { "from": "human", "value": "As an individual/organization should I pay VAT and income tax as well?" }, { "from": "gpt", "value": "Income tax is a compulsory tax obligation whereas, for VAT, you pay for it when you are registered with VAT." } ]

[ { "from": "human", "value": "What are the benefits of the VAT Special Table?" }, { "from": "gpt", "value": "The VAT special table bears the following benefits for traders:\n1. Identify erroneously added VAT obligations or VAT obligations that are no longer required.\n2. Reduces cases of abuse of traders PIN by fraudulent persons\n3. Assist traders to conduct business with compliant suppliers" } ]

[ { "from": "human", "value": "What happens when a Taxpayer is on-boarded on the VAT Special Table?" }, { "from": "gpt", "value": "1. The taxpayer on-boarded on the VAT Special Table will be restricted from filling VAT returns. Upon attempting to file the return, the system will display the message: “This PIN is currently under review for VAT compliance irregularities. Please contact nearest KRA office.”\nNote : Penalties will not be charged for non-filling of VAT returns as a result of on boarding of a taxpayer on the VAT special table.\n2. Traders cannot claim input tax from taxpayers’ on boarded on the special table. Upon upload of an original or amended VAT return that contains the PIN of a taxpayer who is in the special table, the entry will be rejected by the system and the following message displayed: “This PIN is not liable to input tax deduction”.\nThe affected taxpayers will be required to contact their Tax Service Office for guidance on removal from the VAT Special Table." } ]

[ { "from": "human", "value": "How do I calculate VAT" }, { "from": "gpt", "value": "VAT operates on an Input - answer Principle. A registered person should maintain a record of his sales and purchases for a tax period.\nInput tax refers to VAT charged on purchases of taxable purchases and expenses for business purposes.\nanswer tax refers to the VAT charged on the sales of taxable goods or services.\nTax payable is the difference between the answer tax and the Input tax.\nanswer Tax - Input Tax = VAT Payable\n If positive, tax due is payable on or before the 20th of the following month." } ]

[ { "from": "human", "value": "What is exempt from Withholding Tax?" }, { "from": "gpt", "value": "- Dividends received by a company resident in Kenya from a local subsidiary or associated company in which it controls (directly or indirectly) 12.5% or more of the voting power.\n- Marketing commissions and residue audit fees paid to foreign agents in respect of export of flowers, fruits and vegetables.\n- Interest payments to banks and insurance companies.\n- Payments made to tax exempt bodies.\n- Local management and professional fees whose aggregate is below Ksh 24,000 in a month.\n- Air travel commissions paid by local air operators to overseas agents." } ]

[ { "from": "human", "value": "What is Withholding Income Tax and what type of transactions does it apply to?" }, { "from": "gpt", "value": "Withholding Income Tax is tax withheld at source. A person making certain payments deducts tax, at the applicable rate, and remits the tax to the Commissioner on behalf of the recipient. Examples of payments subject to withholding tax include, among others: \n- Management, professional or training fees\n- Consultancy fees, Legal fees, Audit fees\n- Contractual fees\n- Winnings\n- Appearance at or performance to entertain\n- Royalties\n- Interest and deemed interest\n- Dividends" } ]

[ { "from": "human", "value": "Can an employer choose to either pay their staff using the withholding tax or PAYE regime?" }, { "from": "gpt", "value": "Employees are subject to PAYE taxes. The rates applicable are the individual tax (graduated scale) rates and the employer may take into account allowable deductions (such as mortgage interest) and reliefs (such as personal relief and insurance relief) when computing the PAYE." } ]

[ { "from": "human", "value": "What is Turnover Tax (TOT)?" }, { "from": "gpt", "value": "Turnover Tax (TOT) is a tax charged on gross sales of a business as per Sec.12 (c) of the Income Tax Act. The tax is payable by resident persons whose gross turnover is more than Ksh 1,000,000 but less than Ksh 50,000,000 in any given year." } ]

[ { "from": "human", "value": "What is the effective date of TOT?" }, { "from": "gpt", "value": "1st January 2020" } ]

[ { "from": "human", "value": "What is the rate of TOT and the due date for filing and paying?" }, { "from": "gpt", "value": "Turnover Tax is charged at the rate of 1% on gross sales. The due date for filing and paying TOT is on the 20th day of the following month." } ]

[ { "from": "human", "value": "Does the levying of Turnover Tax and Presumptive Tax amount to double taxation?" }, { "from": "gpt", "value": "No. Presumptive tax is an advance tax that shall be deducted from Turnover Tax payable in the subsequent month(s).\nHowever, Presumptive Tax was repealed(wef 25.04.2020)." } ]

[ { "from": "human", "value": "Are there any exemptions under Turnover Tax?" }, { "from": "gpt", "value": "Income exempt from TOT include;\n- Persons with business income below Ksh 1,000,000 and above Ksh. 50,000,000\nEmployment income,\nRental income,\nManagement and professional services.\nAny income subject to final withholding tax" } ]

[ { "from": "human", "value": "Can a taxpayer choose not to be subject to Turnover Tax?" }, { "from": "gpt", "value": "Taxpayers who are eligible for Turnover Tax may opt to be under the provisions of this tax by writing to the Commissioner of Domestic Taxes. However this is subject to approval." } ]