The document summarizes Kenya's turnover tax (TOT). It states that TOT is charged at 1% on gross sales between KES 1-50 million annually. It is due by the 20th of each month and expenses are not deductible. The document provides details on registration, filing returns, payments and penalties for non-compliance.

1. PUBLIC
TURNOVER TAX

2. PUBLIC
• 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
• First introduced vide Finance Act 2006, replaced by
Presumptive Income Tax vide Finance Act 2018 then
reintroduced vide Finance Act 2019.
• The effective date of TOT is 01/01/2020
What is Turnover Tax?

3. PUBLIC
What is the rate of tax?
• Turnover Tax is charged at the rate of 1% on gross
sales
• Expenses are not deductible
• It is a final tax

4. PUBLIC
Due date for TOT
• The due date for filling and paying Turnover tax is on
20th of the following month.
• Turnover Tax is a monthly tax.

5. PUBLIC
Exemptions
Incomes exempt from TOT include:
1. Persons with business income below Ksh 1,000,000
and above Ksh 50,000,000,
2. Rental Income,
3. Management or Professional or Training Fees
4. Any income subject to a final withholding tax
NB: Taxpayers who are eligible for Turnover Tax may
opt not to be under the provisions of this tax by writing
to the Commissioner of Domestic Taxes. However, this
is subject to approval.

6. PUBLIC
TOT Registration for a new PIN
• Log onto itax.kra.go.ke
• Click on new PIN registration
• Select ‘Yes’ to the following question: Do you want to register for
TOT?
• Under obligation details, the system selects TOT and auto-
populates the registration date.
• The system then automatically selects ‘Yes’ for business income and
‘No’ for employment and business incomes.
• The system will automatically populate Business Name, Physical Full
Address, and main email address which taxpayer can change.
• Additionally, under the ‘Sector of the economy’, ‘TOT Recruitment
Section’ has been added for ‘Section’, TOT Recruitment Group for
‘Group’, and TOT Recruitment Description for ‘Description’.

7. PUBLIC
TOT Registration for a new PIN cont”
• Upon submission, a task will be generated for approval. Approval for the
same will qualify as TOT registration and the taxpayer may then
commence filing of the return.

8. PUBLIC
TOT Registration for an Existing PIN
• Log onto the iTax profile with your PIN and password
• Go to the registration menu, click on amend PIN details
• Select ‘Yes’ to the following question: Do you want to register for
TOT?
• The system then automatically selects ‘Yes’ for business income and
‘No’ for employment and business incomes.
• The system will automatically populate Business Name, Physical Full
Address, and main email address which taxpayer can change.
• Additionally, under the ‘Sector of the economy’, ‘TOT Recruitment
Section’ has been added for ‘Section’, TOT Recruitment Group for
‘Group’, and TOT Recruitment Description for ‘Description’

9. PUBLIC
Turnover tax return
1. Login to www.itax.kra.go.ke,
2. Under the returns menu, select file return, then
turnover tax and download the excel return
3. Complete the return and submit.
4. After filing the return, go to the payment menu,
select “payment”, select the amount payable, and
generate a payment slip.
5. Make the payment at a partner bank or through M-
PESA

10. PUBLIC
Penalties for non-compliance
• TOT late filing penalty is Ksh. 1,000 per month
(wef 25/04/2020).
• Late payment penalty is 5% of the tax due
• Interest on unpaid tax is 1% of the principal tax
due