KRA SME Turnover Tax and Housing levy explained

Cortedivoire

Cortedivoire

Elder Lister
Staff member
Let’s Say you get 100,000/- to Invest in a small Business Today making 10% Per Month Just Buying and Selling any commodity

Your Total Sales would be 110,000/-
Your Gross Profit would be 10,000/-
Let’s assume you incur the following Expenses to generate that Profit

Transport - 2,500/-
Storage - 1,000/-
Transaction Fees - 400/-
Other Miscellaneous Costs - 1,000/-
So Total expenses would be 4,900/-
Net Profit Will be 10,000/- Less 4,900/- Which is 5,100/-

Now Take Note CAREFULLY
KRA would take 3% of 110,000/- which Equals to 3,300/- for TOT

KRA would also take 1.5% of 110,000/- towards Affordable Housing which Equals to 1,650/-

So Now add both deductions to your expenses of 4,900/- which now comes to 9,850/- ( Treat the Taxes as Upfront Expenses)

You are left with 150/- as your NET PROFIT a return of 0.13% on your initial investment of 100,000/-

With Etims and Revenue assistants walking everywhere, this is the reality facing SME’s with turnovers upto 25,000,000/- Annually

Am just a messenger!
 
Good thing you can always reason with Tax Agents should a demand notice appear. There's the law and practical part of it, but it's a bad law nontheless and needs revision.
 
Cortedivoire said:
Let’s Say you get 100,000/- to Invest in a small Business Today making 10% Per Month Just Buying and Selling any commodity

Your Total Sales would be 110,000/-
Your Gross Profit would be 10,000/-
Let’s assume you incur the following Expenses to generate that Profit

Transport - 2,500/-
Storage - 1,000/-
Transaction Fees - 400/-
Other Miscellaneous Costs - 1,000/-
So Total expenses would be 4,900/-
Net Profit Will be 10,000/- Less 4,900/- Which is 5,100/-

Now Take Note CAREFULLY
KRA would take 3% of 110,000/- which Equals to 3,300/- for TOT

KRA would also take 1.5% of 110,000/- towards Affordable Housing which Equals to 1,650/-

So Now add both deductions to your expenses of 4,900/- which now comes to 9,850/- ( Treat the Taxes as Upfront Expenses)

You are left with 150/- as your NET PROFIT a return of 0.13% on your initial investment of 100,000/-

With Etims and Revenue assistants walking everywhere, this is the reality facing SME’s with turnovers upto 25,000,000/- Annually

Am just a messenger!
Click to expand...
Fixing the handshake
 
Cortedivoire said:
Let’s Say you get 100,000/- to Invest in a small Business Today making 10% Per Month Just Buying and Selling any commodity

Your Total Sales would be 110,000/-
Your Gross Profit would be 10,000/-
Let’s assume you incur the following Expenses to generate that Profit

Transport - 2,500/-
Storage - 1,000/-
Transaction Fees - 400/-
Other Miscellaneous Costs - 1,000/-
So Total expenses would be 4,900/-
Net Profit Will be 10,000/- Less 4,900/- Which is 5,100/-

Now Take Note CAREFULLY
KRA would take 3% of 110,000/- which Equals to 3,300/- for TOT

KRA would also take 1.5% of 110,000/- towards Affordable Housing which Equals to 1,650/-

So Now add both deductions to your expenses of 4,900/- which now comes to 9,850/- ( Treat the Taxes as Upfront Expenses)

You are left with 150/- as your NET PROFIT a return of 0.13% on your initial investment of 100,000/-

With Etims and Revenue assistants walking everywhere, this is the reality facing SME’s with turnovers upto 25,000,000/- Annually

Am just a messenger!
Click to expand...

@Denis Young @Kasaman leteni maoni.
 
Cortedivoire said:
Let’s Say you get 100,000/- to Invest in a small Business Today making 10% Per Month Just Buying and Selling any commodity

Your Total Sales would be 110,000/-
Your Gross Profit would be 10,000/-
Let’s assume you incur the following Expenses to generate that Profit

Transport - 2,500/-
Storage - 1,000/-
Transaction Fees - 400/-
Other Miscellaneous Costs - 1,000/-
So Total expenses would be 4,900/-
Net Profit Will be 10,000/- Less 4,900/- Which is 5,100/-

Now Take Note CAREFULLY
KRA would take 3% of 110,000/- which Equals to 3,300/- for TOT

KRA would also take 1.5% of 110,000/- towards Affordable Housing which Equals to 1,650/-

So Now add both deductions to your expenses of 4,900/- which now comes to 9,850/- ( Treat the Taxes as Upfront Expenses)

You are left with 150/- as your NET PROFIT a return of 0.13% on your initial investment of 100,000/-

With Etims and Revenue assistants walking everywhere, this is the reality facing SME’s with turnovers upto 25,000,000/- Annually

Am just a messenger!
Click to expand...

Sad to admit but thats where we are. One needs to be creative with the books. Otherwise you will be out of business faster faster
 
A good thing some of us are embracing the old ways, farming what we eat and selling the excess, deleted sugar by choice, using tallow instead of cooking oil, God willing going off grid power wise, by adapting solar, the only place Gok will be taxing me is PAYE and fuel.
 
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