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Tax Basics

What are Tax Obligations? Checking Your VAT and PAYE Status

J
Jigrow ComplianceTax Basics Expert

Common KRA Tax Obligations

When you register for a PIN, KRA assigns specific 'obligations' based on your activities. Common ones include:

  • **Income Tax - Resident Individual**: For all resident Kenyans earning above a certain threshold.
  • **Value Added Tax (VAT)**: For businesses with an annual turnover of KES 5 million and above.
  • **PAYE**: For employers who must deduct tax from employees.
  • The Danger of Inactive Obligations

    Even if your business is dormant, having an active VAT obligation means you must file 'Nil' returns. Failure to do so leads to heavy penalties.

    How to Check Your Status

    Use the **Obligation Checker** on Jigrow to see exactly what you are registered for and ensure you don't miss a filing deadline.