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BAC 304 Fundamentals of Taxation - Presumptive Tax

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Summary

This is a detailed document on the recently introduced Presumptive tax by KRA to replace the previous Turnover Tax with effect from January 1st 2019. It entails penalties, deadline of payment, method of payment of the tax.

PRESUMPTIVE TAX
The government of Kenya since 1st January2008 have been targeting the small scale traders through the Turnover Tax (TOT) which required the small business with a yearly turnover of between Ksh 500,000 to 5 Million to pay a tax of 3% quarterly that’s after every 3 months starting from 1st January every year. This was marred with lots of drawbacks in collection being traders not disclosing their correct earnings hindering its success ..................................................


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