Corporate Tax Compliance: Why It Matters for Your Business
Staying on top of corporate tax compliance is essential for businesses operating in Kenya. With evolving tax regulations and increased scrutiny from the Kenya Revenue Authority (KRA), ensuring accuracy in tax filings is more important than ever. At Frankbridge Advisory Limited, we provide expert corporate tax compliance services, helping businesses navigate regulations, minimise risks, and optimise tax positions while avoiding costly penalties.
What is Corporate Tax?
Corporate tax is a direct tax imposed on the profits of registered companies in Kenya. Resident companies are taxed at 30%, while non-resident companies face a 37.5% tax rate. Certain businesses, such as Export Processing Zone (EPZ) companies, enjoy tax incentives or exemptions for a specified period.
The Consequences of Non-Compliance with Corporate Tax Regulations in Kenya
Failure to comply with corporate tax requirements can lead to:
Penalties and interest charges on late or incorrect filings.
KRA audits and investigations, leading to business disruptions.
Legal risks, including potential prosecution for tax evasion.
Loss of tax incentives due to non-compliance with reporting obligations.
How Frankbridge Advisory Limited Can Help with Your Corporate Tax Compliance
At Frankbridge Advisory Limited, we provide tailored corporate tax services to ensure compliance with Kenya’s tax laws while helping businesses take advantage of available reliefs and deductions. Our team works closely with clients to address tax obligations, mitigate risks, and manage tax liabilities effectively.
Our Corporate Compliance Services:
Corporate Tax Advisory and Compliance
We guide businesses on key corporate tax obligations, including:
Kenyan companies must file their annual corporate tax returns within six months after the end of their financial year. Late filing attracts penalties, and interest accrues on unpaid taxes. Frankbridge Advisory Ltd handles CIT calculations, filings, and compliance, ensuring accuracy and timely submissions.
Withholding Tax (WHT) deductions and remittances
Failure to deduct and remit withholding tax on payments like consultancy fees, dividends, and rent can lead to costly penalties and interest imposed by KRA. We assist in identifying applicable WHT obligations, ensuring proper deductions, and filing timely remittances.
Capital Gains Tax (CGT) treatment for asset disposals
If your company sells property or shares, CGT at 15% applies. However, exemptions exist for specific transactions—understanding these can significantly impact your tax liability. Frankbridge Advisory Ltd helps businesses assess CGT obligations, apply exemptions, and file correctly to avoid overpayment.
Significant Economic Presence Tax (SEPT) requirements for foreign companies
Foreign companies earning income from Kenyan users through digital platforms may be required to pay tax in Kenya, even without a local office or physical presence. Frankbridge Advisory Ltd helps global businesses navigate SEPT requirements and meet KRA obligations.
Tax Incentives and Exemptions
Kenyan tax laws offer various incentives and exemptions to encourage investment, but navigating the application process can be complex. We help businesses identify applicable tax reliefs, such as investment deductions, special economic zone incentives, and exemptions for specific industries. Our team handles the entire application process, ensuring compliance with KRA requirements while maximising tax benefits.
Private Ruling Applications
Tax laws can be dense and complicated, especially for those who don’t deal with them regularly. Misinterpretations can lead to costly errors, non-compliance, or overpayment. We help businesses navigate these complexities by seeking private rulings from KRA, ensuring official clarification on the tax treatment of specific transactions. This gives your company certainty in tax matters and reduces the risk of unexpected liabilities.
Capital Expenditure and Investment Deduction Reviews
Capital investments, such as machinery, equipment, and infrastructure, qualify for tax deductions, but many businesses fail to claim them fully. We review capital investments to ensure businesses claim all eligible deductions, reducing taxable income in line with Kenya’s tax framework.
Tax Health Checks
Tax compliance gaps can lead to penalties, interest, and audits. Our tax health checks involve a deep dive into your company’s tax filings, payments, and reporting structures. We identify risks, correct errors, and provide recommendations to strengthen your compliance posture, helping you avoid costly disputes with KRA.
KRA Audit Support and Dispute Resolution
If your business is selected for a tax audit by KRA—that won’t be fun for you. Audits can be time-consuming, financially draining, and, if mishandled, lead to hefty penalties. If KRA selects your business for an audit, we support you through the entire process, from gathering documentation to responding to KRA’s queries. If disputes arise, our experts provide strong representation, negotiating fair settlements and ensuring your interests are safeguarded.
Tax Training and Compliance Workshops
Tax laws are constantly evolving, and businesses must stay informed to avoid compliance issues. We offer tailored training sessions and workshops designed to equip finance teams, accountants, and business owners with up-to-date tax knowledge. Whether in-house or offsite, our sessions cover corporate tax requirements, compliance best practices, and KRA expectations, ensuring your team is well-prepared to manage tax obligations.
Legislative Updates
Tax laws and regulations are constantly evolving, and staying informed is key to maintaining compliance and avoiding unexpected tax liabilities. We provide timely updates on:
Changes in the tax laws and exemptions
New compliance requirements
Key updates from the Kenya Revenue Authority (KRA), National Treasury, and Parliament
Insights on disputes that have been decided in the courts and tax tribunal and policy changes affecting businesses
Stay ahead of tax changes. Drop your email HERE to receive exclusive tax updates from Frankbridge Advisory straight to your inbox.
Why Choose Frankbridge Advisory Limited?
We provide expert corporate tax services, offering in-depth planning, compliance, and audit support tailored to your business needs.
We keep you compliant with evolving tax regulations, ensuring your business stays ahead of KRA requirements.
We help you minimise tax risks, identifying and addressing potential issues before they become costly.
We tailor tax solutions to your business, aligning tax strategies with your financial goals while ensuring full compliance.
We will support you through audits and disputes, providing expert representation if KRA selects your business for review.
We offer end-to-end tax assistance, handling everything from tax filings to applying for exemptions and deductions.
Get in Touch with Us Now for Your Corporate Tax Needs!
Need expert corporate tax support?
Contact us today to ensure your business stays compliant while maximising tax-saving opportunities.
Frequently Asked Questions on Corporate Tax in Kenya
How do I file corporate tax returns in Kenya?
How do I pay corporate tax to KRA?
Do I need to pay corporate tax in installments?
What are the penalties for late corporate tax filing in Kenya?
Can Frankbridge Advisory Limited help with corporate tax filing?
Ask us about our Corporate Tax Compliance services.
