← Insights
Turnover Tax or Income Tax? Choosing the Right Regime
CPA David Otieno · 20 July 2026
Turnover Tax at 3% sounds simple, but the wrong choice can cost your business millions. Here is how we advise clients.
Turnover Tax applies to businesses with annual turnover between KES 1M and KES 25M. It is deceptively simple.
## When TOT wins
Low-margin trading businesses often benefit.
## When Income Tax wins
Service businesses with high deductible expenses almost always pay less under the standard regime.
Book a consultation for a tailored analysis.