Tax tips for Kenyan businesses in 2023-2024

At Junyan and Associates, we understand that staying compliant with tax laws and regulations can be a challenge for Kenyan businesses. That’s why we’re here to provide you with some tax tips for 2023 that can help you minimize your tax liability and maximize your profitability.

Key tax changes in Kenya for 2023

Here are some of the key tax changes that Kenyan businesses should be aware of in 2023:

• Increase in the turnover tax rate from 1% to 3%: This means that businesses will be paying more tax on their turnover.
• Introduction of withholding tax on sales promotion, marketing, and advertising services to residents, digital content monetization to residents and non-residents, and rental income received on behalf of the owner of a premises: This means that businesses that make these types of payments will be required to withhold tax and remit it to the Kenya Revenue Authority (KRA).
• Introduction of tax on income derived from the transfer or exchange of digital assets (cryptocurrency): This means that businesses that earn income from cryptocurrency trading will be subject to tax on that income.

Why is it important for Kenyan businesses to stay up-to-date on tax laws?

By staying up-to-date on tax laws, businesses can:

• Ensure that they are complying with all applicable tax requirements
• Avoid any potential penalties
• Use tax planning strategies to minimize their tax liability

How can Junyan and Associates help Kenyan businesses minimize their tax liability?

Junyan and Associates is a leading accounting consultancy firm in Kenya. We have a team of experienced tax professionals who can help you understand your tax obligations and develop tax planning strategies to minimize your tax liability. We can also help you with tax compliance, including filing tax returns and paying your taxes on time.

Tax tips for Kenyan businesses

Here are some tax planning tips for Kenyan businesses in 2023:

• Set realistic financial goals for your business. This will help you to identify potential tax deductions and credits that can be used to reduce your tax liability.
• Identify potential tax deductions and credits. There are a number of tax deductions and credits available to Kenyan businesses, but it is important to be aware of which ones are applicable to your business. You can use our tax deduction and credit calculator to help you identify potential tax deductions and credits for your business.
• Structure your business in a tax-efficient manner. The way that your business is structured can have a significant impact on your tax liability. For example, choosing the right business structure can help you to reduce your corporate income tax liability.

Tax compliance tips for Kenyan businesses

Here are some tax tips for Kenyan businesses in 2023:

• Keep accurate financial records. This will help you to prepare accurate tax returns and avoid any potential penalties.
• File your tax returns on time and accurately. The KRA has strict deadlines for filing tax returns, and penalties can be imposed for late or inaccurate filing. You can use our tax filing service to help you file your tax returns on time and accurately.
• Pay your taxes in full and on time. Businesses are required to pay their taxes in full and on time, and failure to do so can result in penalties and interest.

Tax avoidance tips for Kenyan businesses

Here are some tax avoidance tips for Kenyan businesses in 2023:

• Understand the difference between tax avoidance and tax evasion. Tax avoidance is legal, while tax evasion is illegal.
• Avoid aggressive tax avoidance schemes. Aggressive tax avoidance schemes are often risky and can lead to penalties from the KRA.

Tax relief tips for Kenyan businesses

Here are some tax tips for Kenyan businesses in 2023:

• Be aware of the different types of tax relief available. The KRA offers a variety of tax relief schemes, such as tax holidays and investment allowances. You can use our tax relief calculator to help you identify potential tax relief options for your business.
• Apply for tax relief if you are eligible. Businesses that are eligible for tax relief should apply for it in order to reduce their tax liability.

Additional tips for Kenyan businesses in 2023

• Take advantage of the new investment deduction allowance for capital expenditure incurred on the construction of docks and industrial buildings. This allowance can be claimed over a period of five years and can significantly reduce the tax liability of businesses that are investing in these types of projects.
• Claim mortgage interest expense on loans borrowed from cooperative societies. This deduction is available to businesses
• Claim mortgage interest expense on loans borrowed from cooperative societies. This deduction is available to businesses that are using the loan to finance their operations. You can use our mortgage interest expense calculator to help you calculate your potential tax deduction.
• Be aware of the new withholding tax on sales promotion, marketing, and advertising services to residents, digital content monetization to residents and non-residents, and rental income received on behalf of the owner of a premises. Businesses that are making these types of payments will be required to withhold tax. You can use our withholding tax calculator to help you calculate the amount of tax that you need to withhold.
• Consider using a tax compliance software solution. A tax compliance software solution can help you to automate your tax compliance tasks, such as filing tax returns and paying your taxes on time. This can save you time and money, and help you to avoid potential penalties from the KRA.