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

In his Eighth Condition of the Country Deal with on 30th Nov this calendar year, President Uhuru Kenyatta submitted a report to the parliament recognizing Micro, Small, and Medium Enterprises (MSMEs) as the lifeblood of Kenya’s economy however a massive range of them are unlicensed.

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

This usually means that fewer than 27 p.c of all enterprises in Kenya are registered. Out of these, 92.2 per cent are micro-enterprises although only 7.1 per cent and .7 percent are little and medium enterprises respectively.

The motive some of the MSME operators give for not registering their enterprises is that they dread getting subjected to significant taxation that may conclude up ingesting on their income.

However, as you will soon uncover, there are quite a few benefits that await unregistered MSME operators as taxpayers that such as financial loans and authorities services. 

Bid for government contracts

Bid for govt contracts

As a registered compact small business operator as a taxpayer, you will be putting your self in the most effective position to bid and win authorities tenders and trade with the federal government and non-government establishments.

If your company is not registered, you are unable to bid for authorities contracts or even partner with other businesses to choose benefit of communal gains like crucial networks, in particular with larger firms with who they could even enter into sub-contracts.

Consequently, you will continuously be locked out of useful organization associations. Only set, if an business is not a taxpayer it cannot grow!

Personalized tax and customs advisory services

Customized tax and customs advisory companies

These are products and services made available by the Kenya Revenue Authority (KRA) via its vast network, social media, and telephony amid many others to hell MSMEs operators fully grasp the tax and customs ecosystem especially if they intend to get into import and export small business.

This is in addition to industry and networking alternatives through its taxpayers’ roundtables that the taxman organizes to bring collectively companies for needs of sharing concerns impacting them and receiving company guidance in line with the main organization of the authority.

It is for the duration of these conferences that the Authority avails options for business owners to network and even establish new markets.

Import and export incentives

Import and export incentives

As a small enterprise operator, your aim is to improve from serving the regional people today to accomplishing enterprise globally. No small business operator would their venture continue being stagnant hence the will need for registration.

MSMEs registered with the taxman stand the prospect of receiving import incentives that consist of lowered import tariffs on inputs these types of as machinery and uncooked supplies to spur producing of items for export where by the authority provides free VAT for its users.

The taxman also has a provision for cash allowances on installed machinery and a attainable 20 percent export payment arrangement.

Numerous business opportunities

Many organization alternatives

Did you know? In line with the federal government directive on public procurement, 30 p.c of all procurement at KRA goes to enterprises run by the youth, girls, and individuals with disabilities which are predominantly MSMEs. A different motive why you have to have to register as a smaller enterprise operator.

Unregistered enterprises should really register as taxpayers in buy to open up doors to enterprise alternatives that can only be accessed at the time the business acquires the all-essential PIN amount.

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