With effect from 01/01/2020 Micro, small and even medium enterprises are required to pay Turnover tax. Turnover tax is charged at 1% on gross sales payable by resident persons whose gross turnover from business is more than Kshs. 1,000,000 and does not exceed or is not expected to exceed Kshs 50,000,000 in any given year.

Turnover tax is a monthly tax payable on or before 20th of the following month.

Turnover Tax (TOT) is TOT does not apply to:

  1. Persons with business income below Ksh. 1,000,000 and above Kshs. 50,000,000,
  2. Rental Income,
  3. Management, Professional and Training Fees,

Sec 12 c

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