Mandatory TIMs/e-TIMs compliance; critical implications.
Mandatory onboarding: VAT & non-VAT taxpayers Effective 1st January 2024 All invoices for supporting expenditure for tax purposes must have been generated from electronic invoicing management system e-TIMS. Under Section 15 of the Income Tax, business expenditure provided for deduction in ascertaining the adjusted taxable income for the year must have been incurred wholly & […]
QuickBooks Online for Start-Ups
Accurate, up-to-date, clear, correctly analyzed financial data is an impactful strength for any business, and for start-ups this could easily be the factor that determines whether your business survives and thrives or it crushes as soon as it starts. Financial data grows linearly in volume and complexity with any business expansion. And because growth and […]
The Social Health Insurance Fund (SHIF); 2.75% new NHIF rates
Proposals under the Social Health Insurance Fund Act; Salaried employees to contribute a standard 2.75% of their monthly gross income. Self-employed individuals to contribute 2.75% of their declared or assessed monthly gross income, with a minimum contribution set as Ksh. 300. Unemployed individuals or those categorized as vulnerable to contribute Ksh. 1,000. Individuals listed as […]
Understanding Value Added Tax
Value Added Tax, or VAT, is a tax on the value added by businesses during each stage of production and distribution of a product or service. VAT is applied at every stage, from materials acquisition to final sale.
How can businesses leverage Compliance Audits for continuity planning?
It is easy for business owners to get all their focus directed in growing the business. However, it is important for them to understand that compliance problems could lead to significant problems down the road. Compliance audits, conducted regularly ensure that your company has completely adhered to laws and regulations around its operations, and to […]
Transfer Pricing
A proposal to expand the scope of transactions subject to Transfer Pricing to include; The objectives of this expansion is to deter tax avoidance resulting from profits repatriation therefore resulting to additional compliance requirements for multinational enterprises. Currently, transactions subject to TP rules in Kenya include;
Business adaptability in changing tax landscape.
How organizations can adapt in a changing tax landscape? The Kenyan tax system has experienced significant modifications just this year. Currently, additional deductions are applied on both individual and business income. The impact of the additional deductions on the disposable income is obvious. For businesses, the tax cost has gone up and may continue to […]
No more relief; Tax Alert
No more abandonment in cases of unpaid tax, interests/penalties Taxpayers must stay aware that following the enactment of Finance Act 2023, effected 1st July 2023, the Commissioner can no longer recommend waiver for penalties and interests or abandonment of tax on the basis of difficulty in recovering the tax, hardship, equity. Implication The implication of […]
How to qualify for the Tax amnesty 2023
The Kenya Revenue Authority has notified taxpayers about the tax amnesty provided under the Finance Act 2023. The amnesty applies to penalties and interests for tax debt up to the period 31st December 2022. The following are factors of eligibility; Disclaimer: Please note that eligibility may only be confirmed by the KRA.
Is repatriated income taxed in Kenya? Finance Act, 2023
The Finance Act 2023 introduced amendments to the ITA by inserting Section 7B to introduce tax payable on repatriated income. Additionally, amendments provides for a reduction in the corporate tax rate for non-resident businesses doing business in Kenya through a permanent establishment (branch) from 37.5% down to 30%. The Act also introduced a tax at […]
