tax mistakes

Top 5 Tax Mistakes Kenyan Businesses Make

Monday, June 6 2024

Top 5 Tax Mistakes Kenyan Businesses Make

Running a business in Kenya is no small feat, and navigating tax regulations can add another layer of complexity. Here are the top 5 tax mistakes Kenyan businesses often make:

1. Filing & Payment Errors: The Kenya Revenue Authority (KRA) requires different forms and payment schedules depending on your business type and employee status. Failing to file the correct forms or make timely payments can result in penalties and wasted
2. Record-Keeping Woes: Good record-keeping is essential for tax purposes. Many businesses wait until the last minute to sort through finances, leading to missed
deductions and potential errors. Keeping clean records throughout the year streamlines the filing process and ensures you claim all your rightful deductions.
3. Mixing Personal & Business Expenses: It’s tempting to use your business accounts for personal expenses. However, claiming personal expenses as business deductions is a big no-no. Keep your business and personal finances separate to avoid tax headaches during audits.
4. Underestimating & Underreporting: Accidentally or intentionally under-reporting income can lead to serious tax consequences. Ensure you accurately track all your income sources to avoid underpaying taxes.
5. Missing Out on Deductions: The Kenyan tax system allows for various business deductions. Not claiming all the deductions you’re entitled to means you’re essentially paying more tax than necessary. Familiarize yourself with allowable deductions and keep proper documentation to claim them effectively.

By avoiding these mistakes, Kenyan businesses can save time, and money, and avoid unnecessary stress during tax season. Consider consulting Adamjee Auditors, a qualified tax professional for personalized guidance on maximizing deductions and ensuring tax compliance, talk to us today and avoid making costly mistakes.

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