Following the reading of the Budget Statement for the financial year 2018/19 by the Cabinet Secretary for the National Treasury, The Finance Bill, 2018 (Bill) has now been published. Under the Provisional Collection of Taxes and Duties Act, the provisions of the Bill will come into force on different dates between 1 July 2018 and 1 January 2019.
The Bill seeks to introduce a number of amendments to the tax regime to mobilize revenues to finance the Government’s KES 3 trillion budget. Some of the amendments include:
a) Introduction of a presumptive tax targeting the informal sector;
b) Overhaul of the compensating tax regime;
c) Robin Hood taxes - tax on money transfers by banks;
d) One year extension of the tax amnesty;
e) Doubling of the late payment interest charges; and
f) Repeal of interest rate capping.
Click the link below for KPMG’s comprehensive analysis of the changes that have been proposed in the Bill.
We will provide further updates as soon as the Bill is passed into law.
For any queries on the alert please contact:
Partner, Tax and Regulatory Services
© 2020 KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.