Turnover Tax Calculator Kenya: Simplified Tax for Micro Businesses

Turnover Tax (TOT) is a simplified tax for micro-businesses earning under KES 50 million annually. Instead of complex tax returns, you pay a small percentage of your turnover. This calculator shows your monthly and annual TOT.

Calculator
Result
Monthly TOT: KES 8,333.333
Annual TurnoverKES 10,000,000
TOT Rate1% of turnover
Annual TOTKES 100,000
Monthly TOTKES 8,333.333

At KES 10,000,000 annual turnover, your simplified TOT is KES 8,333.333 per month. No complex tax return needed.

Automate this
Want Veira to do this for every sale, every shift, every branch, automatically?

What is Turnover Tax (TOT)?

Turnover Tax is a simplified tax regime for micro and small businesses. Instead of calculating profits and filing complex tax returns, you pay 1% of your total annual turnover. This is much simpler and cheaper than normal tax compliance.

You're eligible if your annual turnover is below KES 50 million. Once you exceed this, you must switch to normal income tax and file full returns.

TOT Benefits for Small Business

No need to keep detailed records. No profit calculations. No complex deductions. Just calculate 1% of turnover and pay. This saves time, reduces accounting costs, and simplifies compliance.

TOT is especially suited for retail shops, market vendors, and small services. You pay the same amount regardless of profit margin-if business is slow, you still pay the same TOT.

Worked examples

Small retail shop
  • Annual turnover: KES 10,000,000
  • TOT = 10,000,000 × 1% = KES 100,000
  • Monthly payment: KES 100,000 ÷ 12 = KES 8,333
Market vendor
  • Annual turnover: KES 5,000,000
  • TOT = 5,000,000 × 1% = KES 50,000
  • Monthly payment: KES 50,000 ÷ 12 = KES 4,167

Frequently asked questions

Who qualifies for TOT?
Businesses with annual turnover below KES 50 million. You must apply to KRA and be registered for TOT. Not all businesses qualify (e.g., financial services, mining).
What happens if I exceed KES 50M turnover?
You must stop TOT and switch to normal income tax. This requires filing a full tax return and calculating profit. Inform KRA immediately to avoid penalties.
Do I still need to file tax returns if I'm on TOT?
No. You just pay the 1% monthly and don't file detailed returns. KRA gets a simple TOT payment record instead.
Is TOT paid monthly or annually?
Usually monthly through a bank or KRA payment channel. You can also negotiate annual payment with KRA in some cases.
What if I have tax losses under TOT?
Losses don't reduce your TOT. You still pay 1% of turnover regardless. This is the trade-off for simplified compliance.

Business reviews

4.8
Based on 4 reviews
5
3
4
1
3
0
2
0
1
0
Jane M.
Verified business

Finally a tool that gets Kenyan tax rules right. Zero KRA rejections since using this.

5/10/2024
Noor A.
Verified business

Accurate and saves me hours every month. The breakdown is clear and my staff finally understand their deductions.

5/20/2024
Ahmed H.
Verified business

Exactly what I needed. Calculated costs before ordering and saved a fortune on import duties.

5/15/2024
David K.
Verified business

Very helpful. Only thing missing is export to CSV but overall excellent.

5/5/2024

Used this tool? Share your experience and help other businesses.