I recently needed to file my Turnover Tax (TOT) return in Kenya, but I wasn’t sure how the process works on iTax. Since TOT is filed monthly, missing deadlines can lead to penalties.
If you run a small business, here’s a simple guide to help you file your TOT return correctly and on time.
Quick Answer
To file Turnover Tax (TOT) in Kenya, log in to the KRA iTax portal, download the return form, fill it, submit, generate a payment slip, and pay the tax.
What Is Turnover Tax (TOT) in Kenya?
Turnover Tax (TOT) is a tax charged on gross sales of small businesses.
👉 Key details:
- Applies to businesses earning KSh 1M – KSh 50M annually
- Charged at 1% of gross monthly sales
- Filed monthly
Who Should Pay Turnover Tax?
You qualify if:
- Your turnover is between KSh 1,000,000 and KSh 50,000,000 per year
👉 TOT does NOT apply to:
- Rental income
- Professional services
- Final withholding tax income
TOT Filing Deadline and Penalties
- Filing deadline: On or before 20th of the following month
Penalties:
- Late filing: KSh 1,000 per month
- Late payment: 5% of tax due
- Interest: 1% per month
Step-by-Step: How to File Turnover Tax Return in Kenya
Step 1: Log in to iTax Portal
Go to the KRA iTax portal and log in.
Step 2: Go to Returns Menu
Click on:
- Returns
- Then select File Return → Turnover Tax (TOT)
Step 3: Download Excel Return Form
Download the TOT Excel return template.
Step 4: Fill in Return Details
Enter your:
- Gross monthly sales
- Required tax details
Step 5: Upload and Submit Return
Upload the completed file and submit your return.
Step-by-Step: How to Pay Turnover Tax
Step 1: Go to Payment Menu
Select:
- Payment → Amount Payable
Step 2: Generate Payment Slip
Create a payment registration slip.
Step 3: Make Payment
Pay via:
- M-Pesa
- KRA partner banks
Important Notes About TOT
- TOT is a final tax
- Expenses are not deductible
- Must be filed every month
- You must add TOT obligation on iTax first
Extra Tips and Best Practices
- File returns before the 20th
- Keep proper sales records
- Ensure correct figures when filing
- Always confirm submission
- Pay immediately after filing
Common Mistakes to Avoid
- Missing monthly deadlines
- Entering incorrect sales figures
- Forgetting to upload return file
- Not generating payment slip
- Ignoring penalties
FAQ
What is the rate for Turnover Tax in Kenya?
It is 1% of gross monthly sales.
When should I file TOT returns?
Before the 20th of the following month.
Can I opt out of TOT?
Yes, by not registering for TOT obligation on iTax.
Conclusion
Filing Turnover Tax (TOT) in Kenya is simple when you follow the right steps. Just log in to iTax, submit your return, and pay on time to avoid penalties.
