It’s a tax imposed on non-individual players in the sector at a standard rate of 30%.
This is a tax imposed on individuals in the sector using the individual rates applicable.
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Pay As You Earn (PAYE)
This tax will apply to a sector player who has employees (administrative or causal laborers) that earn an aggregate in excess of 235,000 per month. This form of tax is withheld every month.
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WHT and VAT will only be applicable to a sector player who decides to process agricultural products and food stuffs (Value Addition) except for wheat grains.
Withholding tax (WHT) is income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). If crop farmer supplies goods above 1 million, the person to whom those goods are supplied charges withholding tax at a rate of 6%. The farmer receives a Tax Credit Certificate that helps in offsetting tax liability in the final income tax return.
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Value Added Tax (VAT) is a consumption tax charged at a rate of 18% on all supplies made by taxable persons. The threshold for VAT registration is an annual turnover of over 150 million, or 37.5 million in the first 3 consecutive months.
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