The document discusses various types of prohibited goods including counterfeits, substandard goods, contraband goods, and goods involved in illicit trade. It provides examples of each category and explains how prohibited goods threaten communities, society, and economic stability by reducing tax revenues and legitimate employment. The last part lists other specific goods that are prohibited such as fake currency, pornographic materials, hazardous chemicals in drinks, narcotics, hazardous waste, and products containing mercury or used tires.

1. INTERNAL
What You Need to Know About Your Taxes
By Tax Education

2. INTERNAL
o Unique identifier obtained by an individual as well as an artificial person (i.e. company, club,
Trust, etc.)
o For purposes of transacting business with KRA, other Government agencies and service
providers.
o It is a statutory requirement that every person who has income chargeable to tax or any
person whom the Commissioner may so require to have it.
o A partnership where the partners are not husband and wife, must obtain a PIN.
o A sole proprietorship uses the proprietors individual PIN for all transactions.
o PIN is not a tax contrary to what some people think.
What is a PIN (Personal Identification Number )

3. INTERNAL
Obligations Eligibility Rate Return Period
Income Tax Resident Taxpayers registered
for this obligation
Graduated Scale between
10% to 30%
By June 30th, the following
year.
Income Tax Non-
Resident
Taxpayers registered
for this obligation
Graduated Scale between
10% to 30%
By June 30th, the following
year.
Income Tax PAYE Employers only Graduated Scale between
10% to 30%
By 9th day of the following
month.
VAT Taxpayers whose
annual turnover is 5
million & above 0%, 8% & 16%
By 20th every month
Corporation Tax Companies, trusts, co-
operatives, e.t.c.
Resident companies 30%,
non-resident companies
37.5%
Return done by end of 6th
month, following end of
accounting period
During registration of your pin, a taxpayer must indicate the obligation they want and specify the registration date
Eligibility for Withholding Income Tax: Payers of certain incomes e.g.
professional services, contractual fees e.t.c. at different rates.
Do You Know Your Business Obligations under PIN?

4. INTERNAL
Residential Rental
Income Tax
Charged on residential property, @ 10% of gross monthly rent
received from 12,000 up to Kshs. 833,333 per month. Return done by
the 20th of the following month.
Capital Gains Tax
Tax on transfer of land, buildings and trade securities taxed at the rate
of 5 % on the net gain.
Excise Duty
It is a duty imposed on selected goods (e.g. alcohol, tobacco) and
services (e.g. bank and mobile transfer charges) e.t.c.
Return is done by 20th day of the following month after registration.
Advance Tax Levied on commercial vehicles. Paid annually by 20th January.
Import Duty
Money payable based on the value of the items and the prevailing
applicable duty rate.
Other Taxes

5. INTERNAL
o Registration-Eligible taxpayers have an obligation to register for a tax PIN.
o Filing your returns and making tax payments.
o Accuracy of your returns/Customs entries.
o Payment of tax and penalties.
o Cooperation with KRA officers.
What are Your Obligations as a Taxpayer?

6. INTERNAL
o Late filing of annual Non-Individual returns attracts 5% of tax due or Kshs. 20,000 whichever
is higher.
o For P.A.Y.E Return (Employers), 25% of the tax due or Kshs. 10,000 per month, whichever is
higher.
o For VAT & Excise returns, 5% of the tax due or Kshs 10,000 per month, whichever is higher.
o Late filing of annual Individual returns is 5% of tax due or Kshs. 2,000 whichever is higher.
What are the Implications for Late Filing of Tax Returns?
A person who fails to pay tax on the due date shall be liable to pay a late payment penalty of
5% of the tax due. And interest of 1% for each subsequent month the tax remains unpaid.

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• Presumptive tax is tax levied on resident persons whose annual turnover is below Kshs. 5
million.
• The effective date is 1st January 2019.
Rate & Due Date
• The rate of presumptive tax is 15% of the business permit or trading license fees issued by a
county government in a given year of income. E.g. for a Business permit of 10,000;
• 15% = 1,500, which is a final tax for the entire year.
The due date for payment of tax shall be at the time of payment for the business permit or
trade license or renewal of the same. This also becomes the tax point for the presumptive tax.
Presumptive Tax at a Glance

8. INTERNAL
Eligibility
o It applies to all persons who are issued or liable for issuance with a business permit or
trade license by a county government in a year of income.
o One may however elect not to be subject to presumptive tax by writing to the
Commissioner. In such a case, the other provisions of the Income Tax Act shall apply.
Exclusions
o Presumptive tax shall not apply to income derived from—management and professional
services; or rental business; or incorporated companies
Presumptive Tax at a Glance, Cont:

9. INTERNAL
Type Description MDA
Counterfeits Products that pose risks to society and to tax revenues
These include goods that infringe trademarks, design rights or
patent; and tangible pirated products, which breach copyright.
ACA
Substandard
Goods
Goods that endanger lives such as Auto parts that fail,
pharmaceuticals that make people sick, toys that harm children,
baby formula that provides no nourishment and medical
instruments that deliver false readings.
KEBS
Contraband
Goods
Goods imported or exported illegally KRA,
ACA
KEBS
What are Prohibited Goods?

10. INTERNAL
o This involves goods & services deemed illegal as they threaten communities and society as a
whole.
o This trade has a negative impact on economic stability, social welfare, public health, public
safety & the environment. Examples include:
1. Health & Safety - narcotics, fake medicines & foods, defective materials, alcohol &
tobacco.
2. Environment - endanger wildlife & rainforests through illegal environmental crimes.
3. Exploitation - forced human trafficking, prostitution and slavery.
4. Terrorism - financing criminality and terrorism.
5. Government - reduction of tax revenues & legitimate employment.
What is illicit trade and the illegal economy?

11. INTERNAL
o False money and counterfeit currency notes and coins and any money.
o Pornographic materials in all kinds of media.
o Distilled beverages containing essential oils or chemical products, which are injurious to
health.
o Narcotic drugs under international control.
o Hazardous wastes and their disposal.
o All soaps and cosmetic products containing mercury.
o Used tyres for light commercial and passenger cars
Other forms of prohibited goods