Three years in business… then KRA calls. 👀
How ready are your books?
Before uanze kusema “KRA wananishow nini sasa?”
Check these 3 things:
1️⃣ Uko kwa right tax regime?
If your annual turnover is between KSh 1M and KSh 25M, you may qualify for TOT, subject to the applicable conditions.
TOT is charged at 1.5% of gross sales.
No expense deductions.
But don't assume TOT is automatically cheaper.
If your margins are thin, compare the numbers with the normal income tax regime.
2️⃣ Can you explain every shilling coming into the business?
Bank.
M-PESA.
eTIMS.
Sales records.
These should tell the same story.
KSh 500K imeingia kwa account?
Can you explain:
→ How much was sales?
→ How much was a loan?
→ Transfers ilikuwa ya nini?
→ Any other receipts?
Don't wait for KRA ndio uanze reconstructing three years of transactions.
3️⃣ Do your returns match your books?
Business iko active but returns zinaonyesha nil?
Sales kwa eTIMS hazimatch returns?
Bank/M-PESA iko na numbers different?
Hapo ndio questions zinaweza kuanza.
Reconcile your records before filing.
And if you're under TOT, remember returns and payment are generally due by the 20th of the following month.
The goal isn't to make sure KRA never calls.
The goal is simple:
If they call, you can explain your numbers.
No panic.
No digging through three years of statements.
No guessing.
Three years in business should leave a financial trail.
Make sure your books can explain it. 📊
