Turnover tax calculator
Work out your monthly turnover tax at 1.5% of gross sales, and check whether turnover tax applies to your business.
Who pays turnover tax?
Turnover tax applies to resident businesses whose gross sales are between KES 1 million and KES 25 million a year. It is charged at 1.5% of gross sales, with no deduction for expenses, and replaces income tax on that business income. It is a final tax. It does not cover rental income, management, professional or training fees, or income already subject to final withholding tax. Separately, VAT registration is compulsory once taxable sales reach KES 5 million in 12 months.
Returns are filed monthly on iTax, and the tax is due by the 20th of the following month. Businesses with sales above KES 25 million must register for VAT and pay income tax instead.
Common questions
What is the turnover tax rate in Kenya?
Turnover tax is 1.5% of gross monthly sales for businesses with yearly turnover between KES 1 million and KES 25 million.
When is turnover tax due?
File and pay by the 20th of the month after the sales were made. For example, March sales are due by 20 April.
Can I deduct expenses?
No. Turnover tax is charged on gross sales, before any expenses.
This calculator gives an estimate to help you plan. It is not financial advice; confirm figures with your bank, lender or KRA.