What is the rate for Turnover Tax (TOT)? Turnover Tax is charged at the rate of 1% on gross monthly sales. Expenses are not deductible. This is a final tax.
What is tot in Kra?
Turnover Tax (TOT) is a tax charged on gross sales of a business as per Sec. 12 (c) of the Income Tax Act. The tax is payable by resident persons whose gross turnover is more than Ksh 1,000,000 but less than Ksh 50,000,000 in any given year. … Turnover Tax is charged at the rate of 1% on gross sales.
Is withholding tax a final tax?
Withholding tax is not a final tax.
What is the difference between TOT and VAT?
A turnover tax is similar to VAT, with the difference that it taxes intermediate and possibly capital goods. It is an indirect tax, typically on an ad valorem basis, applicable to a production process or stage. For example, when manufacturing activity is completed, a tax may be charged on some companies.
What is final income taxation?
– Final income tax is a tax that has been levied on certain income that can not be deducted from the tax payable (not credited) at the end of the period because the tax obligation has been completed at the time of the tax cuts.
How is TOT tax calculated?
To calculate TOT, multiply the rent charged by 12%. For example, if a guest is charged $75 plus a $25 “service fee,” the taxable rent is $100. The tax would be 12% of $100, which is $12. To collect the TOT, the party that receives the rent payment adds TOT to the rent and collects both at the same time.
What are the three types of withholding taxes?
Three key types of withholding tax are imposed at various levels in the United States:
- Wage withholding taxes,
- Withholding tax on payments to foreign persons, and.
- Backup withholding on dividends and interest.
When Should I withhold taxes?
Everyone should check withholding
For those who owe, boosting tax withholding in 2019 is the best way to head off a tax bill next year. In addition, taxpayers should always check their withholding when a major life event occurs or when their income changes.
What is a final withholding tax?
Final Withholding Tax is a kind of withholding tax which is prescribed on certain income payments and is not creditable against the income tax due of the payee on other income subject to regular rates of tax for the taxable year.
Who pays VAT buyer or seller?
You must account for VAT on the full value of what you sell, even if you: receive goods or services instead of money (for example if you take something in part-exchange) haven’t charged any VAT to the customer – whatever price you charge is treated as including VAT.
What is minimum turnover tax?
This is an alternative tax. … It is payable when the normal tax liability in cases of exemption, loss, tax credits or for any other reason, is less than tax payable on turnover basis.
How is turnover tax paid?
Accordingly, Turnover Tax is payable on a monthly basis of 3% of your gross total sales, by the 20th of every month.