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

In his Eighth State of the Nation Deal with on 30th Nov this 12 months, President Uhuru Kenyatta submitted a report to the parliament recognizing Micro, Small, and Medium Enterprises (MSMEs) as the lifeblood of Kenya’s economy nevertheless a massive quantity of them are unlicensed.

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

This signifies that fewer than 27 p.c of all companies in Kenya are registered. Out of these, 92.2 per cent are micro-enterprises when only 7.1 p.c and .7 per cent are modest and medium enterprises respectively.

The rationale some of the MSME operators give for not registering their corporations is that they worry remaining subjected to substantial taxation that may stop up eating on their income.

Nevertheless, as you will shortly learn, there are a lot of gains that await unregistered MSME operators as taxpayers that including loans and government products and services. 

Bid for government contracts

Bid for govt contracts

As a registered tiny company operator as a taxpayer, you will be placing by yourself in the greatest situation to bid and get federal government tenders and trade with the federal government and non-govt institutions.

If your business is not registered, you can not bid for govt contracts or even associate with other firms to choose advantage of communal advantages like essential networks, specifically with more substantial corporations with who they could even enter into sub-contracts.

Therefore, you will repeatedly be locked out of helpful small business associations. Simply set, if an enterprise is not a taxpayer it can not grow!

Personalized tax and customs advisory services

Personalized tax and customs advisory expert services

These are providers offered by the Kenya Revenue Authority (KRA) by its wide community, social media, and telephony amid other people to hell MSMEs operators realize the tax and customs atmosphere particularly if they intend to get into import and export small business.

This is in addition to sector and networking prospects by way of its taxpayers’ roundtables that the taxman organizes to provide collectively corporations for applications of sharing concerns impacting them and acquiring business enterprise guidance in line with the core business of the authority.

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

Import and export incentives

Import and export incentives

As a tiny business enterprise operator, your target is to increase from serving the area individuals to undertaking enterprise globally. No organization operator would their venture stay stagnant consequently the need for registration.

MSMEs registered with the taxman stand the prospect of receiving import incentives that incorporate reduced import tariffs on inputs this sort of as equipment and uncooked components to spur production of merchandise for export where the authority offers no cost VAT for its customers.

The taxman also has a provision for cash allowances on put in machinery and a attainable 20 per cent export compensation arrangement.

Numerous business opportunities

Several business possibilities

Did you know? In line with the governing administration directive on community procurement, 30 per cent of all procurement at KRA goes to enterprises run by the youth, women of all ages, and folks with disabilities which are generally MSMEs. Another explanation why you need to have to register as a smaller enterprise operator.

Unregistered enterprises ought to sign up as taxpayers in order to open doors to company chances that can only be accessed when the company acquires the all-crucial PIN variety.

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