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Where do we stand after enactment of Presumptive Tax?
Taxpayers who are eligible for Presumptive Tax may elect not to be under the provisions of this tax by writing to the Commissioner of Domestic Taxes. FILE PHOTO | NMG
Presumptive tax came into effect on January 1, 2019 after its introduction through the Finance Act 2018. The primary aim was to replace the Turnover Tax that had proven to be ineffective in terms of revenue collection. Therefore, as of January 1, 2019, Turnover Tax was a thing of the past.
Just like Turnover Tax, Presumptive Tax is payable by resident persons or business entities whose turnover does not exceed Sh5 million during a year of income.
