> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bumara.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Turnover tax

> The simplified monthly tax regime for smaller businesses — who qualifies, how it is calculated, and how to file.

<Warning>
  **Rates, thresholds and deadlines change.** The figures on this page reflect the rules Bumara
  applies today and are given as a guide. The regulator's current published position always
  governs. Bumara applies the rate in force when your filing is calculated — always check the
  figures shown on your actual filing rather than relying on this page, and take professional
  advice on how the rules apply to your business.
</Warning>

Turnover tax is a simplified regime for smaller businesses. Instead of calculating profit and
paying income tax on it, you pay a flat percentage of your gross monthly turnover.

## Who it is for

| Requirement         | Detail                                                        |
| ------------------- | ------------------------------------------------------------- |
| **Annual turnover** | Between K12,000 and K5,000,000                                |
| **Registration**    | You must be registered for turnover tax with ZRA              |
| **Alternative**     | Above the ceiling, you move to the standard income tax regime |

<Warning>
  Turnover tax and standard income tax are alternatives. You are on one or the other, never both.
  Tick only the one you are actually registered for when connecting ZRA.
</Warning>

## How it is calculated

**5% of gross monthly turnover.**

Gross turnover means everything you invoiced or received in the month, before any deductions. You
do not subtract costs, purchases, salaries or expenses. That simplicity is the point of the regime
— and also its drawback, because a low-margin month still attracts the same 5%.

| Turnover for the month | Tax due                  |
| ---------------------- | ------------------------ |
| K50,000                | K2,500                   |
| K120,000               | K6,000                   |
| K0                     | Nil — but you still file |

## When it is due

**14 days after the period end.**

| Period   | Ends        | Due         |
| -------- | ----------- | ----------- |
| January  | 31 January  | 14 February |
| February | 28 February | 14 March    |
| March    | 31 March    | 14 April    |

## Filing your return

<Steps>
  <Step title="Open the filing">
    ZRA workspace → **Filings** → the turnover tax return for the month.
  </Step>

  <Step title="Enter your turnover for the month">
    If you invoice through Bumara, your approved sales invoices for the period are totalled for
    you. Check the figure against your own records before accepting it.
  </Step>

  <Step title="Check the calculated tax">
    Bumara shows 5% of the turnover you entered. Confirm it looks right.
  </Step>

  <Step title="Upload your sales summary">
    Optional but recommended — a sales report or Z report supporting the figure. Good evidence if
    ZRA ever queries the month.
  </Step>

  <Step title="Review and confirm">
    Confirm the figures.
  </Step>

  <Step title="Pay the fee and request submission">
    A service fee applies. See [Paying fees](/compliance/paying-fees).
  </Step>
</Steps>

## The checklist

| Task                   | Required |
| ---------------------- | -------- |
| Enter monthly turnover | Yes      |
| Upload sales summary   | No       |
| Review and confirm     | Yes      |

## What counts as turnover

| Include                             | Exclude                           |
| ----------------------------------- | --------------------------------- |
| Sales invoices issued in the period | Loans received                    |
| Cash sales taken over the counter   | Capital introduced by the owner   |
| Service fees charged                | Refunds you issued (net them off) |
| Any other trading income            | Money that is not trading income  |

If you are unsure whether something counts, include it and note the query in a comment on the
filing. Under-declaring is a far worse problem than over-declaring.

## Threshold monitoring

Bumara tracks your year-to-date turnover against the K5,000,000 ceiling:

| Level                    | What Bumara does                                     |
| ------------------------ | ---------------------------------------------------- |
| Below 80% of the ceiling | Nothing — you are comfortably within                 |
| At or above 80%          | Warns you that you are approaching the limit         |
| Above K5,000,000         | Alerts you that you must move to the standard regime |

<Warning>
  Exceeding the ceiling is not something to deal with later. Continuing to file turnover tax after
  crossing K5,000,000 means filing under a regime you no longer qualify for, and the correction is
  backdated. Act on the warning at 80%, not at 100%.
</Warning>

## Moving off turnover tax

If you exceed the ceiling — or choose to move because your margins make the standard regime
cheaper:

<Steps>
  <Step title="Raise a tax type change with ZRA">
    A service request from the ZRA catalogue.
  </Step>

  <Step title="Complete any final turnover tax returns">
    You still owe the periods you were registered for.
  </Step>

  <Step title="Update your ZRA connection in Bumara">
    Untick turnover tax, tick income tax. Your obligations update.
  </Step>

  <Step title="Expect a heavier filing load">
    Standard income tax requires proper books, and usually VAT registration follows. Talk to your
    accountant before the change rather than after.
  </Step>
</Steps>

## Nil returns

No turnover in the month? You still file.

<Steps>
  <Step title="Mark the return as a nil return">
    In the figures section.
  </Step>

  <Step title="Give a reason">
    Temporarily inactive, seasonal, below threshold, or other.
  </Step>

  <Step title="Submit">
    The return becomes ready immediately.
  </Step>
</Steps>

## Filing status

| Status                     | Meaning                              |
| -------------------------- | ------------------------------------ |
| **Pending data**           | Turnover not yet entered             |
| **In progress**            | Figures entered, checklist under way |
| **Ready for submission**   | Everything required is done          |
| **Submission in progress** | With the Bumara team                 |
| **Submitted**              | Filed with ZRA                       |
| **Accepted**               | Confirmed by ZRA                     |
| **Needs correction**       | ZRA wants something changed          |

<Note>
  Related: [ZRA overview](/regulators/zra/overview) and
  [Invoicing overview](/invoicing/overview) — your invoicing data is what feeds these figures.
</Note>