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How to Register for Corporation Tax in Kenya

January 29, 2025

Introduction

Starting a business in Kenya is an exciting journey, but it also comes with legal responsibilities—one of the most important being Corporation Tax (CT) registration. This tax applies to businesses operating in Kenya and is crucial for maintaining compliance with tax regulations. In this guide, we’ll take you through the step-by-step process of registering for Corporation Tax with the Kenya Revenue Authority (KRA).

What is Corporation Tax?

Corporation Tax is a form of income tax levied on corporate entities such as limited companies, cooperatives, and trusts based on their annual profits. Both resident and non-resident companies operating in Kenya are required to pay this tax.

  • Resident companies are taxed at a rate of 30%.
  • Non-resident companies are taxed at a rate of 37.5%.

Understanding these rates is essential for financial planning and compliance with Kenyan tax laws.

Determining the Accounting Period

The accounting period, also known as the financial year, is a 12-month duration for which a company prepares its financial statements. In Kenya, businesses can select their accounting period, but most companies align it with the calendar year (January 1st – December 31st).

Choosing an appropriate accounting period is crucial because it determines tax filing deadlines and ensures compliance with KRA regulations.

Steps to Register for Corporation Tax in Kenya

Step 1: Obtain a KRA PIN

Before registering for Corporation Tax, your company must first obtain a Personal Identification Number (PIN) from the Kenya Revenue Authority (KRA). This pin serves as a unique taxpayer identifier.

How to Apply for a KRA PIN:

1. Visit the iTax Portal:

  • Go to iTax and select “New PIN Registration.”

2. Choose Taxpayer Type:

  • Select “Non-Individual” (since the registration is for a company).
  • Choose “Online Form” as the registration method.

3. Provide Company Details:

Enter the required details, including:

  • Company registration number
  • Official business name
  • Contact information

4. Upload Supporting Documents:

Attach copies of the following documents:

  • Certificate of Incorporation (issued by the Registrar of Companies)
  • CR12 form (for private companies, showing shareholder details)
  • Memorandum and Articles of Association (if available)
  • PIN certificates of at least one director

5. Submit the Application:

  • After filling out the form and uploading the necessary documents, submit the application.
  • Upon approval, KRA will issue your company’s KRA PIN certificate.

Step 2: Register for Corporation Tax Obligation

Once your company has a KRA PIN, the next step is to register for Corporation Tax obligation.

How to Register for Corporation Tax on iTax:

1. Log into iTax:

  • Visit the iTax portal and log in using your KRA PIN and password.

2. Add Tax Obligation:

  • Go to the “Registration” menu.
  • Select “Amend PIN Details.”
  • Choose “Corporation Tax” as an additional tax obligation.

3. Set the Effective Date:

Ensure that the effective date for Corporation Tax aligns with:

  • The company’s incorporation date, or
  • The start of business operations (whichever is later).

4. Submit for Approval:

  • Review the details and submit the amendment request for KRA’s approval.
  • Once approved, your company will be officially registered for Corporation Tax.

Conclusion

Registering for Corporation Tax in Kenya is a straightforward process when you follow the right steps. By obtaining a KRA PIN and adding Corporation Tax obligation through the iTax portal, your company will comply with Kenyan tax laws. Proper registration ensures smooth operations, helping your business avoid penalties while focusing on growth and success.

Need expert help with tax registration and compliance? ✅ Spondoo Kenya makes the process seamless!

👉 Get started today: Visit Spondoo Kenya and let our tax experts handle everything for you! 🚀

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Information provided on the site is merely guidance that may change in line with Kenya law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo & Spondoo.ke is a trading name of Accounting SQL Limited, authorised & license accounting firm in the United Kingdom. This trading name is licensed to Spondoo Advisers Limited, an authorised & licensed accounting firm in the Republic of Kenya.
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