Small traders outperform large firms in tax returns

The article highlights that nearly three in four small traders registered with the Kenya Revenue Authority (KRA) paid taxes in the financial year ending June, outperforming large and medium-sized firms, where only one in four companies remitted duty from their earnings. Data from the KRA indicates that micro and small enterprises under the turnover tax (ToT) register are showing higher compliance levels than large companies under corporate income tax.

Alex and Prince note that this improvement reflects the increased use of digital filing platforms such as iTax, enhanced enforcement, and better data integration. However, they caution that the figures for small traders primarily reflect effective compliance within a narrow, already formalised group, rather than a broad, sector-wide improvement in compliance.

Read the article below.