Kenya Turnover Tax (TOT) Calculator
Calculate your Turnover Tax — a flat 3% of gross turnover — and check whether your business is eligible for the TOT regime (annual turnover up to KES 25 million).
How TOT works: If your business turnover is ≤ KES 25M/year, you can elect TOT instead of paying Corporate Income Tax. TOT is a flat 3% of gross turnover — simpler, often cheaper. Election is annual and binding for the tax year.
What is Turnover Tax (TOT) in Kenya?
Turnover Tax (TOT) is a simplified tax for small businesses in Kenya. Instead of paying 30% Corporate Income Tax on profit, eligible businesses pay a flat 3% of gross turnover. It is designed for businesses whose annual turnover does not exceed KES 25 million. TOT is filed and paid monthly, by the 20th of the following month.
TOT vs Corporate Income Tax
TOT charges 3% of turnover regardless of profit; CIT charges 30% of taxable profit. For low-margin or high-turnover businesses, TOT is often cheaper. But TOT cannot deduct expenses or capital allowances, so a business with thin margins and high costs may still prefer CIT. The election is annual and binding — choose carefully before the year begins.
Frequently asked questions
What is the Turnover Tax rate in Kenya?
TOT is 3% of gross turnover for resident businesses with annual turnover up to KES 25 million.
Who is eligible for Turnover Tax?
Businesses with annual gross turnover up to KES 25 million. Those above the ceiling must use Corporate Income Tax.
When is TOT due?
Monthly, by the 20th of the following month.
Is TOT cheaper than CIT?
Often, for low-margin or high-turnover small businesses — but the election is annual and binding, so model both first.