Tax Planning:
Minimize tax liability legally while remaining compliant with tax regulations!
- VAT Reconciliation
- PAYE Preparation and filing
- Turnover Tax (TOT)
- VAT Special Table
- Annual Income Tax
- Monthly Rental Income (MRI) Tax
- Withholding Income Tax
- Tax Health Check
Tax Advisory Services
Tax matters are diverse. They range from simple to complex matters all of which, in Kenya, requires thorough understanding of Income Tax Act, Tax procedures, and other applicable laws and regulations.
A few examples of simple tax matters include:
- Registering KRA PIN: This is a fundamental step for individuals and entities to become recognized by the Kenya Revenue Authority (KRA) for tax purposes. This applies to both residents and non-residents who have tax obligations in Kenya.
- Checking KRA Obligations: Taxpayers need to be aware of the specific tax types they are registered for (e.g., PAYE, VAT, Income Tax) to ensure compliance.
- Verifying Withholding Certificates: These certificates are issued when tax has been deducted at source (e.g., on rent, professional fees). Verifying them ensures accurate tax credit
Complex Tax matters includes:
- Calculating Correct Tax Expense for a Given Tax Accounting Period: This involves a thorough understanding of all income sources, allowable expenses, capital allowances, and other deductions to arrive at the accurate taxable profit or income, and subsequently, the tax liability for a specific financial year. This often requires detailed financial analysis and adherence to specific tax laws and regulations.
- Investment Deductions: This refers to the process of claiming tax relief for certain types of investments, such as those in manufacturing, tourism, or other approved sectors. It requires knowledge of the specific eligibility criteria and calculation methods for these deductions, which can be intricate.
- Corporate Tax Planning: This is a strategic process for businesses to minimize their tax liability legally while remaining compliant with tax laws. It involves analyzing various business decisions, structuring operations, and utilizing available tax incentives to achieve tax efficiency. This is a forward-looking and highly specialized area.
- Objections by Taxpayers: When a taxpayer disagrees with a tax assessment issued by the KRA, they can file an objection. This process involves preparing a detailed case, providing supporting documentation, and often engaging in negotiations or appeals with the tax authorities. It can be a lengthy and legally complex process.
- Transfer Pricing: This is a highly specialized area of international taxation that deals with the pricing of goods, services, and intangibles exchanged between related entities within a multinational group. It aims to ensure that these transactions are priced as if they occurred between independent parties (arm’s length principle) to prevent artificial shifting of profits across borders for tax avoidance. This involves complex economic analysis, documentation, and adherence to international guidelines.
At Savila Consulting, we assist businesses navigate their tax obligations effectively for compliance and tax administration.
Our services include:
- Tax health checks-Periodic tax audits for compliance.
- Tax planning- Explore legitimate tax planning strategies for cost efficiency.
- Preparation of accurate and timely periodic or annual tax returns. PAYE related returns, TOT, MRI tax, VAT, Withholding VAT etc.
- Tax deadline reminder and update on new regulations or communication from KRA to keep you updated.
We recognize these services are closely related to accounting and financial function.
