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

In his Eighth Condition of the Nation Tackle on 30th Nov this calendar year, President Uhuru Kenyatta submitted a report to the parliament recognizing Micro, Little, and Medium Enterprises (MSMEs) as the lifeblood of Kenya’s financial state but a massive selection of them are unlicensed.

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

This implies that much less than 27 per cent of all organizations in Kenya are registered. Out of these, 92.2 per cent are micro-enterprises even though only 7.1 per cent and .7 per cent are tiny and medium enterprises respectively.

The explanation some of the MSME operators give for not registering their organizations is that they dread remaining subjected to significant taxation that may perhaps stop up consuming on their earnings.

Having said that, as you will shortly discover, there are numerous added benefits that await unregistered MSME operators as taxpayers that such as loans and governing administration companies. 

Bid for government contracts

Bid for govt contracts

As a registered little small business operator as a taxpayer, you will be putting on your own in the finest place to bid and win govt tenders and trade with the federal government and non-federal government establishments.

If your company is not registered, you are unable to bid for governing administration contracts or even partner with other firms to consider edge of communal gains such as critical networks, specifically with greater businesses with who they could even enter into sub-contracts.

Hence, you will consistently be locked out of helpful small business associations. Simply just place, if an business is not a taxpayer it cannot improve!

Personalized tax and customs advisory services

Individualized tax and customs advisory providers

These are expert services available by the Kenya Profits Authority (KRA) through its wide community, social media, and telephony among other people to hell MSMEs operators recognize the tax and customs ecosystem primarily if they intend to get into import and export business.

This is in addition to market and networking alternatives through its taxpayers’ roundtables that the taxman organizes to bring together organizations for purposes of sharing problems influencing them and receiving organization suggestions in line with the main business enterprise of the authority.

It is during these meetings that the Authority avails prospects for business owners to community and even build new marketplaces.

Import and export incentives

Import and export incentives

As a small organization operator, your aim is to grow from serving the area men and women to accomplishing company globally. No enterprise operator would their venture continue being stagnant as a result the have to have for registration.

MSMEs registered with the taxman stand the prospect of obtaining import incentives that involve minimized import tariffs on inputs these kinds of as equipment and uncooked elements to spur manufacturing of goods for export exactly where the authority presents absolutely free VAT for its customers.

The taxman also has a provision for funds allowances on put in machinery and a achievable 20 per cent export payment arrangement.

Numerous business opportunities

Various small business possibilities

Did you know? In line with the federal government directive on community procurement, 30 % of all procurement at KRA goes to enterprises run by the youth, females, and men and women with disabilities which are generally MSMEs. A further explanation why you have to have to sign up as a compact enterprise operator.

Unregistered enterprises need to register as taxpayers in order to open up doorways to business alternatives that can only be accessed when the small business acquires the all-vital PIN quantity.