The income tax rate for a company is 30% of the entity’s chargeable income (gross income less allowable deductions).
Click here for information on Corporation tax computation
Individual Income Tax
The income tax rate for individuals depends on the income bracket in which the individual falls.
Click here for information on individual income tax rates
Please note: Pay As You Earn (PAYE) 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.
WHT and VAT will only be applicable to a sector player who decides to process agricultural products and food stuffs (Value Addition) with the exception of wheat grains.
Withholding tax (WHT) is income tax that is withheld at source by one person (withholding tax agent) upon making payment to another person (payee). If a poultry 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.
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.