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

In his Eighth State of the Nation Tackle on 30th Nov this calendar year, President Uhuru Kenyatta submitted a report to the parliament recognizing Micro, Smaller, and Medium Enterprises (MSMEs) as the lifeblood of Kenya’s economic system nevertheless a large variety of them are unlicensed.

In accordance to the 2017 Financial Survey, there are about 1.56 million accredited MSMEs and 5.85 million unlicensed equivalent organizations in Kenya.

This implies that considerably less than 27 p.c of all companies in Kenya are registered. Out of these, 92.2 p.c are micro-enterprises though only 7.1 % and .7 p.c are small and medium enterprises respectively.

The motive some of the MSME operators give for not registering their firms is that they fear becoming subjected to superior taxation that may stop up eating on their earnings.

On the other hand, as you will soon discover, there are lots of benefits that await unregistered MSME operators as taxpayers that which include financial loans and governing administration companies. 

Bid for government contracts

Bid for federal government contracts

As a registered smaller organization operator as a taxpayer, you will be placing oneself in the ideal position to bid and acquire govt tenders and trade with the authorities and non-government establishments.

If your organization is not registered, you simply cannot bid for govt contracts or even companion with other companies to consider gain of communal rewards such as vital networks, primarily with larger sized organizations with who they could even enter into sub-contracts.

Consequently, you will constantly be locked out of valuable small business associations. Just put, if an enterprise is not a taxpayer it simply cannot develop!

Personalized tax and customs advisory services

Personalized tax and customs advisory products and services

These are services available by the Kenya Profits Authority (KRA) via its extensive community, social media, and telephony among the some others to hell MSMEs operators comprehend the tax and customs ecosystem specifically if they intend to get into import and export enterprise.

This is in addition to market place and networking possibilities through its taxpayers’ roundtables that the taxman organizes to carry with each other enterprises for purposes of sharing difficulties influencing them and obtaining enterprise assistance in line with the core business enterprise of the authority.

It is in the course of these conferences that the Authority avails chances for entrepreneurs to network and even build new markets.

Import and export incentives

Import and export incentives

As a compact enterprise operator, your target is to mature from serving the nearby individuals to doing business enterprise globally. No enterprise operator would their undertaking remain stagnant therefore the require for registration.

MSMEs registered with the taxman stand the prospect of acquiring import incentives that consist of reduced import tariffs on inputs these types of as machinery and uncooked supplies to spur production of products for export in which the authority offers cost-free VAT for its members.

The taxman also has a provision for capital allowances on mounted machinery and a attainable 20 p.c export compensation arrangement.

Numerous business opportunities

Various small business opportunities

Did you know? In line with the government directive on public procurement, 30 per cent of all procurement at KRA goes to enterprises run by the youth, women, and folks with disabilities which are generally MSMEs. One more reason why you have to have to register as a little business operator.

Unregistered enterprises ought to sign-up as taxpayers in purchase to open doorways to enterprise opportunities that can only be accessed as soon as the business enterprise acquires the all-essential PIN selection.

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