The Kenya Revenue Authority (KRA) has revealed how Kenyans with informal assets, such as livestock, can declare them for tax purposes.

🇰🇪 Breaking It Down

In a clarification issued via a social media post, the tax agency stated that assets such as cows must be declared as business income when one wants to pay taxes on them.

The clarification followed a taxpayer's request for KRA to explain how assets such as cows can be taxed.

"How can someone pay tax to KRA  with assets like cows?" the user posed.

📌 What You Need to Know

In response, the tax agency noted that assets such as livestock are classified as business income and are subject to taxation.

The taxpayer is required to declare the value of the livestock under the assets section before proceeding to file taxes.

"You will file as business income in the agriculture column. You will declare the value of cows in the assets section of the balance sheet," KRA clarified.

The clarification, however, drew attention from social media users who expressed surprise at the idea of livestock being formally recorded as taxable assets.

Users asked why cows and other agricultural produce are subject to tax.

It is worth noting that, according to KRA, it only taxes livestock and agricultural products kept for commercial purposes.

📰 Source: Kenyans.co.ke