How to register a Non-profit Organization in Kenya?
Non-profit organizations (NPOs) in Kenya are mostly registered as Non-Government Organizations (NGOs).
Other ways include registering as private company limited by guarantee, as societies or trusts.
What taxes are NPOs /NGOs required to pay in Kenya?
Note that how an NPO has been register affects its tax reporting requirements; for example an NPO (NGO) registered as a private company limited by guarantee will be required to lodge annual returns with the Registrar of Companies, which might not be case for other form of registration.
NGOs tax exemptions?
For the following tax obligations, NPOs may enjoy tax exemptions and it if applies, an NPO is advised to follow up with KRA to find out if they qualify and for application.
- Income tax exemptions
- Value Added Tax exemptions on social welfare services.
What are NGOs tax obligations?
NPOs are not exempted from obligation to deduct and withhold taxes in ;
- Deduct withholding tax (WHT) on management and professional fees paid by NPOs.
- Withhold and remit VAT on purchased taxable supplies (when appointed Withholding VAT agent)
What statutory deductions for NGOs?
NPOs could have obligations for statutory deductions for staff relating to:
- NSSF
- NHIF
- NITA
- AHL (Affordable Housing Levy)