Best Tax Lawyers in Vihiga

About Tax Law in Vihiga, Kenya

Tax in Vihiga operates within Kenya’s national tax framework and the Vihiga County revenue system. The Kenya Revenue Authority, often called KRA, administers national taxes such as income tax, value added tax, excise duty, customs duties on imports, capital gains tax on disposal of property and shares, and withholding taxes. Vihiga County Government administers county revenues such as single business permits, property rates in designated urban areas, market fees, outdoor advertising charges, and cess on selected goods.

Most taxpayers interact with KRA through the iTax online system using a Personal Identification Number known as a KRA PIN. Businesses and professionals may also need to use electronic invoicing tools approved by KRA to issue valid tax invoices. County payments and licensing are handled by the County’s revenue offices at the county and subcounty level.

Whether you are an employee, a small trader in Mbale or Luanda, a farmer in Hamisi, a landlord, or a company operating across Western Kenya, you have recordkeeping and filing obligations that are set by law. Finance Acts passed each year may change rates or procedures, so it is important to confirm the current position before you file or pay.

Why You May Need a Lawyer

Many tax matters can be handled with routine filing, but legal help is valuable when issues become complex or contentious. Common situations include the following.

- You receive a compliance notice, assessment, or demand from KRA and you do not agree with it.- Your business faces a tax audit, site visit, or investigation by KRA or Vihiga County revenue officers.- You need to register, deregister, or restructure a business and want to understand the tax impact.- You are selling land or a building and need help with capital gains tax, stamp duty, and withholding obligations.- You are behind on returns or payments and want to negotiate penalties, interest, or a payment plan.- You run payroll and need to implement PAYE, statutory deductions, and correct withholding for contractors.- You supply goods or services and need guidance on VAT registration, invoicing, and electronic tax invoice requirements.- You rent out residential or commercial property and need to comply with rental income tax and county rates or permits.- You operate a nonprofit, school, SACCO, or religious organization and need to navigate exemptions and compliance.- You want to challenge a decision at the Tax Appeals Tribunal or court.

Local Laws Overview

National tax laws that apply in Vihiga include the Income Tax Act, the Value Added Tax Act 2013, the Excise Duty Act 2015, the Tax Procedures Act 2015, the Stamp Duty Act, the Miscellaneous Fees and Levies Act, and the East African Community Customs Management Act for imports and exports. Each year’s Finance Act may adjust rates, thresholds, and procedures. Key points for taxpayers in Vihiga include the following.

- Registration and PIN: Most taxpayers require a KRA PIN. Certain transactions such as land transfers and motor vehicle registrations require a PIN.- Filing systems: Returns and payments are made on iTax. Many businesses must issue electronic tax invoices through KRA approved tools so that customers can claim input VAT where applicable.- Income tax: Employees pay through PAYE deducted by employers. Businesses pay tax on profits, with specialized regimes for small businesses and for residential rental income. Capital gains tax applies on the sale of land, buildings, and shares. Withholding tax may apply to various payments such as professional fees, interest, dividends, and nonresident services.- VAT: VAT applies to taxable supplies and imports. Some supplies are zero rated or exempt. Registration is mandatory once you meet the statutory turnover threshold. Only VAT registered taxpayers may charge VAT and claim input VAT under the law.- Customs and excise: Customs duty, import declaration fees, and excise duty may apply to imported goods and excisable products.- Recordkeeping: Businesses and professionals must keep accurate records and invoices for a period set by law. Good records are your first defense in any audit.

County revenue in Vihiga is guided by national law on county governments and by the Vihiga County Finance Act for the current financial year. Common obligations include the following.

- Single business permits and trade licenses issued by subcounty revenue offices such as in Mbale, Luanda, Sabatia, Hamisi, and Emuhaya.- Property rates that apply to ratable property within designated urban areas and townships based on the county valuation roll.- Market fees, outdoor advertising charges, and cess on specified produce or materials, collected at markets, barriers, or through inspectors.- County compliance visits and enforcement where businesses operate without valid permits or fail to display receipts or licenses.

Disputes and enforcement follow the Tax Procedures Act framework at the national level. Important timelines include filing a notice of objection to an assessment within a short statutory window, commonly 30 days, and further appeals to the Tax Appeals Tribunal and then to the courts. Some stages may require payment of undisputed tax or provision of security. Always check the current requirements because they can change.

Frequently Asked Questions

What taxes apply to individuals living or working in Vihiga

Common taxes include income tax on employment and business income, capital gains tax on sale of property and shares, and VAT on goods and services you purchase. If you earn rental income, a special regime may apply. If you import goods, customs duties and levies may also apply.

Do I need a KRA PIN and how do I get one

Most adults who work, run a business, own a vehicle, or plan to transfer land need a KRA PIN. Registration is done online on iTax or through a Huduma Centre that offers KRA services. Keep your email and phone number current because KRA uses them for notices and password resets.

When must I register for VAT

You must register once your taxable supplies reach the turnover threshold set by law or if you choose to register voluntarily. Only VAT registered persons can charge VAT and claim input VAT. Confirm the current threshold before making a decision.

How are small businesses in Vihiga taxed

Small businesses are taxed on profits under the Income Tax Act or under simplified regimes provided by law. The applicable method depends on your turnover, the nature of your business, and any elections you make. A tax adviser can help you choose the right approach and stay compliant with invoicing and withholding rules.

What is PAYE and who is responsible for it

PAYE is Pay As You Earn. Employers must register, deduct tax from employees’ salaries, remit it to KRA, and file monthly returns. Employers in Vihiga must also calculate and remit statutory deductions where applicable. Penalties apply for late filing or payment.

How does Vihiga County tax affect my business

In addition to national taxes, you will need a single business permit from Vihiga County and may pay market fees, advertising charges, and property rates if you own ratable property. County officers conduct compliance checks. Always keep receipts and display your permit at your premises.

What should I do if I receive a KRA assessment that I disagree with

Read the notice carefully and note the objection deadline. Gather your records, then file a notice of objection on iTax within time and respond to any queries. You must pay any undisputed amount. If you are not satisfied with the objection decision, you can appeal to the Tax Appeals Tribunal within the statutory period. A lawyer can help craft grounds of objection and manage the process.

Do I need to issue electronic tax invoices

If you are VAT registered or fall within categories prescribed by KRA, you must issue electronic tax invoices through approved solutions so that customers can validate the invoice and claim input VAT. Always keep backups of your invoices and train staff on correct issuance.

Are online earnings and gig work taxable

Yes. Income from freelancing, content creation, ride hailing, and other digital platforms is taxable if sourced in or deemed to be derived from Kenya. You may also face withholding taxes or platform related deductions. Keep detailed records of payouts, fees, and costs.

How long should I keep my tax records

Keep records for at least the minimum period required by the Tax Procedures Act, commonly several years, and longer if you can. Retain invoices, receipts, contracts, bank statements, payroll files, and any correspondence with KRA or the County. Good records reduce the risk of adjustments and penalties.

Additional Resources

- Kenya Revenue Authority, Domestic Taxes Department. Handles registration, returns, audits, refunds, and taxpayer services. Regional support is available through KRA offices and Huduma Centres in Western Kenya.- Tax Appeals Tribunal. Hears appeals from KRA objection decisions. Filings and hearings can be managed through its registry.- Vihiga County Government, Department of Finance and Economic Planning, Revenue Directorate. Issues single business permits, property rates, and other county charges. Subcounty revenue offices serve Mbale, Luanda, Sabatia, Hamisi, and Emuhaya.- Huduma Centres. Provide KRA services such as PIN registration and general taxpayer support. Use the nearest centre to Vihiga if a local desk is not available.- Law Society of Kenya, Western Kenya Branch. Can help you find advocates with tax and commercial law experience.- Institute of Certified Public Accountants of Kenya. A directory of practicing accountants and tax advisers who can support compliance and planning.- Kenya School of Revenue Administration. Offers taxpayer education materials and programs that can help you understand your obligations.

Next Steps

- Clarify your issue. Identify whether it involves national tax, county revenue, or both. Examples include a KRA assessment, a pending land sale, a VAT compliance gap, or a missing business permit.- Gather documents. Collect PIN and ID, business registration documents, licenses, contracts, invoices and receipts, bank statements, payroll records, correspondence from KRA or the County, and any prior returns.- Check deadlines. Note objection, appeal, and filing dates. Missing a deadline can limit your options, raise penalties, or force you to pay first and dispute later.- Speak to a professional. Contact a tax lawyer or a licensed tax adviser or accountant familiar with Vihiga and Western Kenya. Ask about scope, fees, timelines, and expected outcomes before you engage.- Stabilize compliance. File any overdue returns, pay undisputed taxes, and set up systems for invoicing, withholding, and recordkeeping. This reduces penalties and strengthens your position in any dispute.- Document all interactions. Keep copies of what you file, proof of payment, and notes of calls or meetings with officials. If a site visit occurs, record the names and official identification of officers who attend.

This guide is general information to help you get oriented. For advice on your situation in Vihiga, consult a qualified professional who can apply the current law to your facts.