Guys, how are full-time traders handling this new SHA registration? Since they want 2.75% of our income, how exactly do we declare this? My trading income is wildly inconsistent—I can withdraw 100k this month and make zero the next two months. Do we just register as unemployed/informal sector and pay the minimum? I don't want to declare a high income and suddenly KRA is knocking on my door.
Comments (4)
For self-employed guys (informal sector), SHA uses a 'means-testing' tool during registration. You self-declare your income, but their system also cross-checks your M-Pesa and bank statements to estimate your financial capability. If you declare 0 but you're receiving heavy broker withdrawals on M-Pesa, the system might flag you and assign you a higher premium than the KSh 300 minimum.
This is exactly why I'm scared of the SHA portal. The moment you declare that your average income is 150k from 'online work', KRA will use that data to demand income tax. I'm just putting 'unemployed' and paying the minimum. I can't be paying 2.75% on trading capital!
Don't overcomplicate it. Trading is a business, and yes, the income fluctuates. The best move is to average out your realistic monthly profit over a year and declare a reasonable, modest amount. The danger of paying the minimum KSh 300 by claiming you are 'unemployed' is that when you actually need the medical cover for a major surgery, they might investigate and penalize you for under-declaring.
So when I blow my account and lose $500, will SHA refund me? 😂 The government only wants to share profits, not losses. Just pay what you can afford so you don't get blocked from government services.
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