Turnover tax calculator
Turnover tax (TOT) is a simple tax for small businesses. You pay a share of your sales instead of income tax on profit.
Enter your sales for the month and what you expect for the year. You will see the tax and whether TOT applies to you.
How it's calculated
- TOT is 1.5% of gross sales, with no deductions for expenses.
- It applies to residents with a yearly turnover of more than Ksh 1,000,000 and up to Ksh 25,000,000.
- You can choose, in writing to the Commissioner, not to pay TOT and use the normal income tax rules.
An example
A shop selling KSh 400,000 in a month pays KSh 6,000 of turnover tax.
Frequently asked questions
Can I deduct expenses?
No. TOT is charged on gross sales, so rent, stock and wages do not reduce it.
What if I sell more than Ksh 25,000,000 a year?
Then TOT does not apply and you pay income tax on your profit.
What are the penalties for paying late?
KRA charges a penalty of 5% of the tax due and interest of 1% on unpaid tax.
Key terms
- Gross sales
- Everything you sold in the period, before any cost.
The same calculation in other countries
South Africa
Philippines
Tanzania
Ghana
Uganda
Rwanda
Cameroon (English)
Zambia
Malawi
Liberia
Gambia
Nepal
Seychelles
Samoa
BhutanUp-to-date official data
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