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

In his Eighth State of the Country Tackle on 30th Nov this calendar year, President Uhuru Kenyatta submitted a report to the parliament recognizing Micro, Compact, and Medium Enterprises (MSMEs) as the lifeblood of Kenya’s economy still a big variety of them are unlicensed.

In accordance to the 2017 Financial Study, there are about 1.56 million certified MSMEs and 5.85 million unlicensed comparable firms in Kenya.

This implies that fewer than 27 % of all organizations in Kenya are registered. Out of these, 92.2 percent are micro-enterprises when only 7.1 % and .7 percent are tiny and medium enterprises respectively.

The explanation some of the MSME operators give for not registering their firms is that they panic remaining subjected to superior taxation that might conclusion up ingesting on their gain.

Nevertheless, as you will soon learn, there are many added benefits that await unregistered MSME operators as taxpayers that which include financial loans and federal government expert services. 

Bid for govt contracts

As a registered compact business operator as a taxpayer, you will be putting your self in the very best position to bid and get federal government tenders and trade with the govt and non-government establishments.

If your business is not registered, you can not bid for authorities contracts or even associate with other enterprises to take benefit of communal gains like critical networks, in particular with bigger businesses with who they could even enter into sub-contracts.

Consequently, you will constantly be locked out of valuable enterprise associations. Basically set, if an business is not a taxpayer it are unable to grow!

Customized tax and customs advisory providers

These are solutions made available by the Kenya Revenue Authority (KRA) by means of its large community, social media, and telephony amid some others to hell MSMEs operators comprehend the tax and customs ecosystem in particular if they intend to get into import and export business enterprise.

This is in addition to market and networking alternatives by way of its taxpayers’ roundtables that the taxman organizes to carry alongside one another corporations for reasons of sharing issues affecting them and acquiring business enterprise assistance in line with the main small business of the authority.

It is in the course of these conferences that the Authority avails prospects for business owners to community and even establish new marketplaces.

Import and export incentives

As a modest organization operator, your purpose is to mature from serving the neighborhood people today to carrying out enterprise globally. No small business operator would their undertaking continue being stagnant for this reason the have to have for registration.

MSMEs registered with the taxman stand the likelihood of getting import incentives that contain decreased import tariffs on inputs these kinds of as equipment and uncooked components to spur producing of goods for export the place the authority presents cost-free VAT for its users.

The taxman also has a provision for cash allowances on set up machinery and a achievable 20 percent export payment arrangement.

Numerous enterprise options

Did you know? In line with the government directive on general public procurement, 30 p.c of all procurement at KRA goes to enterprises operate by the youth, women, and men and women with disabilities which are largely MSMEs. A different purpose why you want to sign-up as a compact business enterprise operator.

Unregistered enterprises should really sign-up as taxpayers in buy to open up doorways to small business possibilities that can only be accessed once the business acquires the all-crucial PIN number.