Despite a significant increase in the number of companies registered in the country, 85% of registered Kenyan companies are not paying corporation tax.
129,000 of the over 862,000 companies registered with the Attorney General’s office paid installment taxes.
In the fiscal year 2022-2023, approximately 102,000 new companies registered to pay corporation tax, bringing the total number of registered companies to 862,000 at the end of the fiscal year.
Despite this phenomenon, the KRA reported that 480,000 companies filed returns in the fiscal year 2022-23.
According to the tax authority, 129,000 companies paid installment tax in the same year, while 123,030 companies paid installment tax in the fiscal year 2021-22, indicating an increase in corporation tax compliance over the years.
At a time when businesses are offlining and disabling their Mpesa paybills and till numbers to ostensibly avoid the taxman’s hawk eye, the KRA has deployed Revenue Service Assistants RSAs to visit taxpayers to help them comply with tax laws.
Although the RSAs are frowned upon by the business community, the taxman claims they will assist taxpayers in getting on the eTIMS register for correct tax obligations and filing simplified returns such as turnover tax.
Previously, the taxman reported collecting Sh3.4 billion from the ongoing tax amnesty, with 17,000 taxpayers taking advantage of the grace period, during which the taxman hopes to collect a total of Sh10.5 billion.
