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The Tax Procedures Amendment Act, 2024, signed into law by President William Ruto on December 11, 2024, introduces several key changes to the Tax Procedures Act of 2015. Notably, it extends the Tax Amnesty Program, with the base period starting from December 31, 2023, and concluding on June 30, 2025. Additionally, the Act clarifies the reverse invoicing threshold and provides detailed guidelines on the contents of an electronic tax invoice.

The National Treasury has introduced the Tax Laws (Amendment) Bill, 2024 and the Tax Procedures (Amendment) (No.2) Bill, 2024, which propose changes to several tax acts. These bills had their First Reading on 13th November 2024. The public is invited to participate and provide comments on 22nd and 23rd November 2024. Our alert compares these amendments with the withdrawn Finance Bill, 2024.

The government is shifting from the traditional comprehensive Tax Laws (Amendment) Bill to a more incremental approach for amending current tax laws. On August 19, 2024, the Cabinet Secretary for the National Treasury and Economic Planning submitted the Tax Procedures (Amendment) Bill, 2024 to the National Assembly. This Bill aims to amend the Tax Procedures Act (Chapter 468B of the Laws of Kenya).

Stay updated with the latest Income Tax regulations for charitable organizations in Kenya. The new Income Tax (Donations and Charitable Organizations Exemptions) Regulations, 2024, provide comprehensive guidelines for applying for tax exemptions from the Kenya Revenue Authority (KRA). Learn about the criteria for recognition, application procedures, and the transition period for compliance by June 18, 2025. Ensure your organization meets the new requirements and benefits from tax exemptions.

On 20th May 2024 KRA informed the public on its intention to conduct a public participation to obtain views on the Free on Board (FOB) values for used motor vehicles before implementation of a new motor vehicle valuation database by 31st August 2024.

On 31st July 2024 the Court of Appeal (CoA) rendered a judgement in the CIVIL APPEAL NO. E003 OF 2023 declaring the Finance Act 2023 unconstitutional.

The Finance Bill, 2024(“The Bill”), was tabled to the National Assembly on 13 May 2024 for the first reading. The proposals in the Bill are likely to have a significant impact on stakeholders if implemented as it is.

The Tax Appeal Tribunal has delivered a decision that marks a significant victory for taxpayers facing adjustments to their transfer pricing methodologies by the Commissioner of Domestic Taxes.

President. William Ruto on 19th March 2024 assented to the Affordable Housing Bill 2023 into law. Pursuantly, Sections 4 and 5 of the Affordable Housing Act, 2024 relating to imposition of the levy and deductions by employers, become effective on the date of assent, the rest of the sections of the Act will become operational via a notice in the Gazette.

The Supreme Court of Kenya, on 21st February 2024 overturned the decision of the Court of Appeal that had declared that the NSSF Act 2013 was constitutional.

Tax Appeals Tribunal (TAT) rendered judgement in the case of M-Kopa LLCC/O M-Kopa Kenya Limited versus Commissioner of Domestic Taxes about the determination of the place of effective management (POEM) for taxation purposes.

Transfer Pricing Update

In this alert GT is sharing key highlights of the changes adopted from the proposed Finance Bill 2023 affecting different tax streams highlighted above.

In this issue, we review the key tax measures that have taken place in selected African countries from 2022 to date.

The Income Tax Company Return, should be submitted to the Kenya Revenue Authority on or before the 6 month after the end of the reporting period.

The prospects and potentiality of the United Kingdom (UK)- Kenya trade deals were eventually formalized into an Economic Partnership Agreement (EPA) that was signed by both parties on 8 December 2020.