Tax Budget Publications
The publication is designed to familiarize clients with tax legislation in Burundi, Ethiopia, Kenya, Rwanda, Tanzania and Uganda. It constitutes only a brief guide and is not intended to be a comprehensive summary of the legislation and practice. While all reasonable care has been taken in the preparation of this publication, Deloitte and its associates accept no responsibility for any errors it may contain, whether caused by negligence or otherwise, or for any loss, however caused, or sustained by any person that relies on it.
Finance Act Insight 2015
The Finance Act 2015 was signed by the President and gazetted on 15 September 2015. One major change introduced is the exemption of capital gains arising from the transfer of shares traded on any securities exchange licensed by the Capital Markets Authority. In addition, a new regime for taxation of rental income for residents has been introduced ct where resident tax payers owning residential properties in Kenya will be taxed at 10% of the gross rent received where the annual rental income does not exceed Kshs 10 million.
The Finance Act has also granted the Commissioner power to appoint and revoke any other person as a withholding VAT agent. Another welcome amendment is that the period to carry forward the tax losses has been increased from 5 years to 10 years effective 1 January 2016. We now analyze all these changes and others.
Miscellaneous Fees and Levies Bill
The Cabinet Secretary has proposed to introduce a Miscellaneous Fees and Levies Bill that will be used to bring to charge the levies and charges that are currently covered under the Customs and Excise Act Cap 472 which is yet to be repealed and empower the Commissioner of Customs to collect the levies.
The Bill empowers the Commissioner to control, collect and account for Railway Development Levy (RDL), Import Declaration Fees (IDF) and export levies subject to the control and direction of the Cabinet Secretary. It further provides that the Cabinet Secretary may from time to time make regulations to ensure proper functioning of the Bill.
The Excise Duty Bill 2015 Analysis
The Excise duty Act 2015 will come into force on enactment of the Excise duty bill which was tabled in parliament on 11 June 2015. Accordingly all the provisions this bill discussed herein will take effect once the bill has been debated in parliament and the bill signed into law.