Business taxes have a direct impact on your business costs and ultimately, your bottom line. In addition, businesses and other organizations need to ensure that they comply with local tax regulations in order to avoid penalties and other punitive measures from the KRA. Non-compliance or filing late taxes in Kenya, for instance, attracts a penalty of Kes. 20,000 or 5% of the tax due whichever is higher.
What is tax consulting?
Filing taxes can be a cumbersome and taxing process in addition to being a highly inefficient one for individuals or organizations without in-depth knowledge of how the taxation system works. Further, poor tax planning can lead to increased business costs, cause late filing and even earn you some penalties if you fail to comply with deadlines and other tax regulations. To avoid these problems and ensure you pay the right amount of taxes you owe the government while ensuring that you adhere to set deadlines, you will need to seek tax consulting services.
Tax consulting is a service that is provided experienced professionals with training in law, accounting, data, and financial analysis and many other fields. While they are drawn from fields such as accounting or law, tax consultants are specially trained to deal specifically with tax planning, computation, and filing. They perform the important role of helping you plan your taxes, comply with tax rules and regulations, file your tax returns, reduce your tax liability and generally ensure that you are fully prepared whenever tax season rolls around.
What advantages do I gain from tax consulting?
Tax consulting has many benefits to offer individuals and organizations. These include;
- Time savings: Depending on whether you are an individual or organization and taking into account factors such as the size of your organization, your tax bracket and many others, it may take you as little as a day or as much as a month to fill your returns. This can eat into the time you need to carry out day to day business activities in addition to affecting productivity. Delegating the task of compiling and filing your returns helps to free up time and gives you the peace of mind that comes with knowing that your taxes are being handled by professionals.
- Reduced tax liability; Certain individuals and organizations qualify for exemptions under Kenya’s taxation laws. These include; persons with disabilities, businesses importing food or medical supplies during famines or shortages and many others. Using a tax consulting service means that you can find out which exemptions you may qualify for and you may find your tax liability reducing by a significant amount.
- Fewer mistakes/penalties; Tax consultants are well versed in laws, regulations, policies and procedures governing taxation. As a result, they can help you compile and file your taxes correctly in order to avoid penalties.
- Better financial planning; Many tax consultancies are also qualified in business consulting and as such, are also able to advise you on how to manage your finances better, how to plan your taxes to save on costs and how to improve your bottom line.
Our highly qualified team at Bon and Drew Associates provides the following tax consultancy services;
- Helping you choose the right business structure for maximum tax efficiency.
- Carrying out health check reviews with regard to corporate tax computations, statutory deductions such as NHIF/NSSF and PAYE, VAT, and withholding taxes. We help organizations and individuals compute and submit these deductions on time in addition to assisting them to calculate any outstanding taxes or penalties.
- Using advanced accounting, financial analysis, report writing and tax preparation software to extract and manage data, analyze financial statements and compute taxes owed.
- Liaising with regulatory bodies such as the KRA as well as industry stakeholders in order to lobby for changes in tax regulation and ensure fairer tax policies.
- Helping clients with tax planning. Tax planning is the process of reducing your tax liability by taking advantage of provisions in the law. For instance, Kenyans contributing to a registered Home Ownership Savings Plan can have up to Kes. 48,000 exempted from taxes. Businesses can also use several strategies to minimize their tax liability in a given year. These strategies include; tracking spending, choosing the right business structure and taking advantage of home office deductions. Bon and Drew Associates can help you take advantage of provisions in the law that will help you minimize your tax burden legally.
Whether you are an individual looking for help with compiling and filing your taxes, or a business looking to learn more about tax planning in order to minimize costs and maximize profits, Bon and Drew Associates has something for you. Kindly contact us to learn more about how we can work together to manage your taxes and improve your finances.