Kenya Budget Highlights 2019/2020
The theme of this year’s budget is “Creating Jobs, Transforming lives – Harnessing the Big Four Plan” which resonates with the government’s aim of accelerating economic growth and generating more employment opportunities and providing better livelihoods for Kenyans.
The government has proposed a 2.8 trillion budget for the financial year 2019/2020. However, the Big Four Agenda has been prioritized with an allocation of Kshs 450.9 billion. See more details below:
VAT Auto Assessment
A VAT registered person is supposed to file VAT return on or before 20th of the following month. With the iTax system, one is supposed to claim the input VAT against the output VAT in order to derive the VAT due.
With KRA adopting a data driven system, it has faced a major risk of non-compliance associated with processing large volumes of VAT data and the need for efficient validation of the results.
However, in a bid to actualize the data driven compliance, KRA has adopted VAT Auto Assessment system.See more details in the file below:
Taxation Of Saccos
Taxation of income generated by Saccos is guided by section 19A of the Income Tax Act, Cap 470.It is however important to note that there are other taxes also applicable to Saccos which are guided by other Acts such as the VAT Act, the Excise Duty Act etc.
In the case of a designated co-operative society, other than a designated primary society, which is registered and carries on the business as a credit and savings co-operative society, chargeable income for the year shall be its income for the year after deducting aggregate bonuses and dividends declared and distributed to the members during the year...
As companies continue to expand their dependence on digital technologies to transform business growth and customer experience, cybersecurity will continue being center stage as a top risk for organizations. The risks leaves no industry untouched as significant impacts are felt for businesses in financial services, health and life sciences, media, technology, communications, utilities and energy. Today, every top management faces the challenge of investing limited resources in an ever changing cyber threat environment...
Ten powerful reasons why financial planning – with the help of an expert financial advisor-get you where you want to be.
- Income: It is possible to manage income more effectively through planning. Managing income helps you understand how much money you will need for tax payments, other monthly expenditures and savings.
- Cash Flow: Increase cash flows by carefully monitoring your spending patterns and expenses. Tax planning, prudent spending and careful budgeting will help you keep more of your hard-earned cash...
Transfer Pricing In Kenya
What is it that multinational companies should be aware of? What is Transfer Pricing? What is a related entity?What are the Kenyan Transfer Pricing Rules of 2006? What Transfer Pricing Methods are used in Kenya?
Transfer pricing is the pricing allocated to transactions such as goods, services and intangibles that are transferred between related entities.Prices are meant to efficiently allocate resources in the market whereas the role of transfer prices is to efficiently allocate resources within a company as they move from one related entity to another within the same corporate group.
National Housing Development Fund
What is National Housing Development Fund
This is a new contribution/deduction on employee’s gross monthly salary and a matching contribution by the employers to be paid to the National Housing Development Fund.
How much will I contribute
The National Housing Development Fund will entail a 1.5% mandatory levy on every worker’s gross salary with a maximum deduction pegged at Ksh5,000, meaning those with monthly income of more than Ksh166,000 will contribute Ksh2,500, with the employer matching the same.
Employee or Consultant
In tax law, there have been cases where a company has categorized individuals as consultants and the tax authorities have objected their treatment as such. Some of these cases have escalated to the halls of justice and where a company was found to have inaccurately classified employees as consultants,the company is exposed to future tax adjustments and demands by the tax authorities.
EMEA TAX BULLETIN – BKR
Welcome to the summer edition of the EMEA Tax Newsletter for 2018. And summer it truly is – with temperatures even here in Hamburg bringing back the Mediterranean feeling of the latest EMEA Meeting in Cyprus back in May. It was good to see many of you again on this occasion, and I feel every time that nothing is more valuable than the strong personal connections which we can be built during these meetings. (Download/View PDF to get all details)
Kenya’s 2017/2018 National Budget Highlights
On Thursday 14th June 2018, the cabinet Secretary in charge of the National Treasury, Mr. Henry Rotich, presented the Budget themed; creating jobs, transforming lives and sharing prosperity for the fiscal year 2018/2019 to the National Assembly. The budget is widely seen as a balancing act of driving the big four agenda. We wish to highlight some of the significant proposals made by the CS with regards to various tax heads as follows; (Download/View PDF to get all details)
Taxation of Dividends in Kenya
The Finance Act, 2018 introduced a tax at corporate rate on untaxed gains or profits from which dividends are distributed with effect from 1st January
2019.This amendment was intended to repeal the requirement by companies to maintain a dividend tax account. Therefore, compensating tax which would be chargeable on distribution of untaxed gains or profits was also abolished.
This change came into place to ensure that any dividends distributed from untaxed gains are subjected to tax at the appropriate rate.
Kenya Tax Guide – Ronalds & Associates
Any tax or duty payable to the Kenya Revenue Authority (except VAT and duty on imports) may be offset on request against any refund of tax or duty confirmed by the Authority. The request must be made 30 days prior to the tax due date. Tax paid in another country on employment income by a Kenyan citizen can be offset against tax payable on that income in Kenya to the maximum of tax payable in Kenya on the said income. (Download/View PDF to get all details)
Kenya’s 2017/2018 National Budget Highlights
On Wednesday 30th March 2017, the cabinet Secretary in charge of the National Treasury, Mr. Henry Rotich, presented the Budget Summary for the fiscal year 2017/2018 to the National Assembly. The Kshs 2.6 Trillion budget is an increase from Kshs 2.3 Trillion adopted last year illustrating the government’s continued adoption of expansionary policies and its positive outlook of the macro-economic indicators in the coming financial year. We wish to highlight some of the significant proposals made by the CS with regards to various tax heads as follows; (Download/View PDF to get all details)
CHEQUE FRAUD AND POSITIVE PAY
How often do you write a cheque? It is quite likely that most of the time you use a credit card or some other form of electronic payment and for many of us, cheques have become obsolete. However, corporations still rely heavily on cheques to pay employees, suppliers and others they do business. It is still the primary way money changes hands in business. The problem with relying on cheques these days is the susceptibility of cheque fraud. With technological advances..
Kenya’s 2016/2017 National Budget Highlights
On Wednesday 8th June 2016, the cabinet Secretary in charge of the National Treasury, Mr. Henry Rotich, presented the Budget Summary for the fiscal year 2016/2017 to the National Assembly. The Kshs 2.3 Trillion budget is an increase from Kshs 2 Trillion adopted last year illustrating the government’s continued adoption of expansionary policies and its positive outlook of the macro-economic indicators in the coming financial year. We wish to highlight some of the significant proposals made by the CS with regards to various tax heads as follows; (Download/View PDF to get all details)