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

In his Eighth State of the Nation Handle on 30th Nov this 12 months, President Uhuru Kenyatta submitted a report to the parliament recognizing Micro, Tiny, and Medium Enterprises (MSMEs) as the lifeblood of Kenya’s financial state but a enormous number of them are unlicensed.

In accordance to the 2017 Financial Survey, there are about 1.56 million licensed MSMEs and 5.85 million unlicensed comparable enterprises in Kenya.

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

The reason some of the MSME operators give for not registering their companies is that they worry remaining subjected to superior taxation that could conclusion up eating on their profit.

Having said that, as you will soon learn, there are quite a few rewards that await unregistered MSME operators as taxpayers that which includes loans and federal government companies. 

Bid for government contracts

Bid for govt contracts

As a registered compact small business operator as a taxpayer, you will be putting yourself in the very best position to bid and get federal government tenders and trade with the government and non-governing administration institutions.

If your enterprise is not registered, you are not able to bid for govt contracts or even lover with other businesses to acquire gain of communal advantages together with important networks, specifically with larger sized businesses with who they could even enter into sub-contracts.

Therefore, you will continually be locked out of valuable business associations. Basically place, if an business is not a taxpayer it can’t increase!

Personalized tax and customs advisory services

Personalised tax and customs advisory solutions

These are solutions presented by the Kenya Revenue Authority (KRA) by way of its vast network, social media, and telephony amongst other individuals to hell MSMEs operators understand the tax and customs surroundings primarily if they intend to get into import and export enterprise.

This is in addition to current market and networking chances by means of its taxpayers’ roundtables that the taxman organizes to convey collectively enterprises for reasons of sharing difficulties impacting them and obtaining company guidance in line with the core small business of the authority.

It is during these conferences that the Authority avails prospects for entrepreneurs to network and even create new markets.

Import and export incentives

Import and export incentives

As a small organization operator, your purpose is to expand from serving the regional people to executing business enterprise globally. No business enterprise operator would their venture remain stagnant hence the will need for registration.

MSMEs registered with the taxman stand the prospect of getting import incentives that include decreased import tariffs on inputs these kinds of as equipment and raw elements to spur production of products for export the place the authority gives absolutely free VAT for its members.

The taxman also has a provision for cash allowances on mounted equipment and a probable 20 per cent export payment arrangement.

Numerous business opportunities

Various enterprise options

Did you know? In line with the federal government directive on general public procurement, 30 p.c of all procurement at KRA goes to enterprises operate by the youth, gals, and people with disabilities which are mostly MSMEs. A different motive why you will need to sign up as a compact organization operator.

Unregistered enterprises should register as taxpayers in purchase to open up doors to business enterprise chances that can only be accessed as soon as the business acquires the all-essential PIN quantity.

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