PKF in Eastern Africa
There have been several changes in tax legislation and how the Kenya Revenue Authority (KRA) is handling certain tax matters over the past couple of months. This tax alert gives an overview of these tax changes and developments.
We are pleased to attach the PKF Kenya Budget Review Analysis for the year 2019/2020. The document includes our commentary on the economy as well as the amendments proposed in the Finance Bill, 2019. The Finance Act, 2019 may bring in additional amendments and we will keep you updated on the same.
This journal is an extension to our Feb 19 journal which had put the EFD under spotlight. In this journal we aim to address common questions a taxpayer faces during the process of issuing a tax invoice, claiming the same and mechanics for processing credit notes.
This Tax Alert highlights the facts of the recent High Court ruling on the Double Taxation Agreement between Kenya and Mauritius and the recent developments with respect to Value Added Tax (“VAT”).
The corporate laws and operating environment affecting companies in Kenya are gradually changing as the Government and various stakeholders aim to ease doing business in the Country as well as minimize the related costs for setting up a business. We here below outline the various developments in this second issue.
This issue addresses the Statement of tax accounts and Addressing tax account variances
Tanzania has implemented an electronic fiscal device (EFD) system since 2010. Over the years we have come across taxpayers who have been penalized for improper or negligent use of their EFD.
Through this journal we shed some light on how to manage EFD effectively and we also guide you on how to check compliance boxes to avoid tax repercussions.
Dividend Distribution Tax
With effect from 1 January 2019, The Finance Act, 2018 repealed Section 7A of the Income Tax Act, CAP 470 (ITA) on compensating tax and replaced it with a tax on dividends distributed out of untaxed gains or profits.
The Kenya Revenue Authority (“KRA”) has issued certain clarifications on the operation of the new changes which we highlight in the publication.
In January 2016 the IASB abolished the need for classification of leases as either finance or operating (for lessees) which previously resulted in assets and obligations related to operating leases being left out of the balance sheet. Other than for short term leases and leases of low value assets, lessees will present all leased assets and obligations on the balance sheet with effect from 1 January 2019.
The Finance Act, No. 10 of 2018 (The Act) which was assented on 21 September 2018 amended various tax laws as highlighted in our 2018 Budget Book and Tax Alert Issue No. 5 2018.
Whereas most of the amendments became effective on 1 July 2018, there are a number of amendments which became effective on 1 January 2019. This alert highlights amendments which became effective on 1 January 2019 and the recent developments with respect to Value Added Tax Auto Assessment (“VAA”) among other important developments.
Download the PKF Tax Alert Issue No. 1 of 2019 which elaborates the Amendments that were effective 1 January 2019
IFRS 9 and 15 are now a reality, the effective date is 1 January 2018 and if you are a 31 December 2018 IFRS reporter, your financial statements will need to comply with the requirements of these new standards. This brief edition of iNews seeks to remind all reporters of the key requirements of these new standards and their effect on the financial statements. If you have not already addressed these standards, we suggest that you engage your professional advisors immediately to discuss the impact and next steps.
The Tax Guide includes amendments up to and including the Finance Act 2018 and the Tax Laws (Amendment) Act 2018
The Kenya Revenue Authority (KRA) recently introduced the VAT Auto Assessment (VAA) process, which is a system-based solution that aims at identifying unsupported and fictitious input VAT claims, thereby broadening the tax base and increase revenue collections
Tax alert Issue No.5 2018 highlights on The Finance Act, 2018 (Finance Act) that was assented by the President on 21 September 2018 following protracted disapproval by majority of members of the National Assembly. Whereas, the Act faced ‘majority opposition’, the members could not garner the required constitutional threshold to over-turn the President’s memorandum. Some sections of the Finance Act have been received with mixed reactions in many quarters. The proposed changes are likely to lead to an increase in pricing of basic commodities such as cost of transportation, food and electricity.
We wish to draw your attention to the recent notice issued by the Registrar of Companies with respect to digitization of filing of statutory returns at the Registry and issuance of the official search - CR12 with effect from 15 October 2017.
PKF Kenya Quick Tax Guide 2017/2018
PKF Kenya Quick Tax Guide 2016/2017
We are pleased to attach a briefing on the Kenya Budget Statement for the fiscal year 2016/2017. The Finance Bill 2016 has not been issued and therefore the finer details of each of the proposals set-out in the Budget Statement may not have been comprehensively dealt with in our briefing. We will in due course issue a more comprehensive analysis of the Finance Bill 2016.
The global tax landscape is a fluid entity - in an ever changing and increasingly complex environment which has seen the arrival of significant tax-related reforms.
The Financier Worldwide features opinions of leading professionals around the world on the latest trends in global tax. Our Tax Partner Michael Mburugu discusses the trends in the Kenya tax landscape (see page 68).