Learn about KRA PIN

Tax Obligations

Pay As You Earn (PAYE)

PAYE is a method of collecting tax at source from individuals in gainful employment, including workers of Religious Organizations and foreign missions working in Kenya.

Gains or Profits include; wages, causal wages, salary, leave pay, sick pay, payment in lieu of leave, fees, commission, bonus, gratuity, or subsistence, travelling, entertainment or other allowance received in respect of employment or services rendered.

If you are an employer you are required to register for this obligation.

As an employer you are required to deduct PAYE from your employees? salaries and wages at the prevailing rates and remit the same to KRA on or before the 9th of the following month


Income Tax

Income Tax is a direct tax on income and is charged for each year of income on all the income of a person, that is accrued in or was derived from Kenya.

This is a compulsory obligation for all resident individuals registering for a PIN.


Value Added Tax (VAT)

Value Added Tax is charged on:

  • Supply of taxable goods or services made or provided in Kenya, and;
  • Importation of taxable goods or services into Kenya.

If you supply or expect to supply taxable goods and taxable services with a value of Kshs 5 Million or more in a year, you qualify to register for VAT.

The Law also provides for voluntary registration for persons who have made taxable sales less than the prescribed 5 million threshold for the purposes of trade

If you are registered for VAT you will be required to charge, collect and account for VAT on your taxable supplies and remit the same to KRA.

You are also required to submit online monthly returns on or before the 20th of the following month.


ed from here.