Money Markets
SMEs move closer to bidding for big State tenders
Workers at a Nairobi- based textile factory. SMEs can only grow if they are exposed to large contracts by government and large businesses. /Fredrick Onyango
Posted Friday, July 31 2009 at 00:00
Taxman’s deadline
Added to this cost is the time involved in filling out the forms and the penalties that follow should one fail to fill them properly or on time.
“Our business is not a fast moving one, so we may have one or two contracts a month and that is the only time when we use our ETR which we bought at Sh23,000,” Mr David Karanja, a business development officer at an IT firm said.
VAT returns have to be submitted before the 20th of the month and failure to beat the taxman’s deadline attracts the higher of a five percent fine on the tax due or Sh10,000.
Even if returns are submitted on time but the business is cash strapped and it cannot pay, a monthly compound interest of 2 per cent is added on what is due to the taxman.
RSS