Benefits Of Registering As A Taxpayer If You’re A Small Business Operator In KenyaKuza Blog

In his Eighth Condition of the Nation Handle on 30th Nov this 12 months, President Uhuru Kenyatta submitted a report to the parliament recognizing Micro, Little, and Medium Enterprises (MSMEs) as the lifeblood of Kenya’s economic system yet a enormous amount of them are unlicensed.

According to the 2017 Economic Survey, there are about 1.56 million accredited MSMEs and 5.85 million unlicensed very similar organizations in Kenya.

This suggests that considerably less than 27 percent of all enterprises in Kenya are registered. Out of these, 92.2 p.c are micro-enterprises even though only 7.1 percent and .7 % are tiny and medium enterprises respectively.

The cause some of the MSME operators give for not registering their enterprises is that they concern currently being subjected to higher taxation that may perhaps finish up ingesting on their financial gain.

Nevertheless, as you will quickly uncover, there are quite a few benefits that await unregistered MSME operators as taxpayers that like financial loans and federal government services. 

Bid for government contracts

As a registered small business operator as a taxpayer, you will be putting on your own in the most effective posture to bid and acquire federal government tenders and trade with the govt and non-government establishments.

If your company is not registered, you can not bid for govt contracts or even spouse with other businesses to get benefit of communal advantages together with vital networks, specially with more substantial organizations with who they could even enter into sub-contracts.

Thus, you will continually be locked out of handy enterprise associations. Just place, if an company is not a taxpayer it are not able to increase!

Customized tax and customs advisory services

These are solutions made available by the Kenya Revenue Authority (KRA) by means of its vast community, social media, and telephony amid other people to hell MSMEs operators recognize the tax and customs ecosystem specially if they intend to get into import and export organization.

This is in addition to sector and networking prospects through its taxpayers’ roundtables that the taxman organizes to provide collectively corporations for needs of sharing difficulties influencing them and acquiring organization assistance in line with the main enterprise of the authority.

It is all through these conferences that the Authority avails chances for business owners to community and even build new markets.

Import and export incentives

As a small enterprise operator, your goal is to mature from serving the neighborhood people today to doing small business globally. No company operator would their undertaking keep on being stagnant hence the have to have for registration.

MSMEs registered with the taxman stand the possibility of obtaining import incentives that include decreased import tariffs on inputs these as machinery and raw elements to spur producing of items for export wherever the authority offers totally free VAT for its members.

The taxman also has a provision for capital allowances on mounted machinery and a doable 20 % export payment arrangement.

Quite a few business options

Did you know? In line with the authorities directive on general public procurement, 30 % of all procurement at KRA goes to enterprises operate by the youth, women of all ages, and people today with disabilities which are largely MSMEs. An additional reason why you want to sign up as a smaller company operator.

Unregistered enterprises need to register as taxpayers in purchase to open doorways to small business chances that can only be accessed once the small business acquires the all-vital PIN quantity.