By Victor Orandi The Finance Act, 2020 assented into law on 30th June 2020. The Act introduced a Minimum Tax, which is a base income tax payable in instalments by all persons regardless of whether or not they make a profit, effective 1st January 2021. The rate of the tax is 1% of the gross...
By Victor Orandi Composite supply means a supply that comprises two or more goods or services, which are naturally bundled and supplied in with each other in the ordinary course of business, one of which is a principal supply and ancillary supply. This means that the goods or services are generally supplied as a combination...
By Matthew Magare The Tax Laws (Amendment) (No. 2) Act No 22 of 2020 (the “Act”) was assented to on 23 December 2020 and came into effect on 1 January 2021. The Act’s primary effect was to reverse the reliefs provided under the Tax Laws (Amendment) Act 2020 that was assented following the COVID –...
By Victor Orandi The Kenya Revenue Authority (KRA) is set to start monitoring businesses’ daily sales. This follows the publication of the Value Added Tax (Electronic Tax Invoices) Regulations 2020 (Regulations) on 10th September 2020. The Regulations will require businesses with an annual turnover of at least Ksh. 5 million to install an electronic tax...
By Victor Orandi On 30th June 2020, the President assented to the Finance Act 2020, which among several other amendments, introduced a Digital Service Tax (DST). The DST is payable by a person whose income, from the provision of services, is generated from or accrues in Kenya through a digital market place. The Cabinet Secretary...
By Victor Orandi, Elainer Mogoa The Finance Act 2020, (the Act) was enacted into law upon assent on 30th June 2020. The Act introduced a new digital service tax to be payable by a person whose income arises from the provision of services derived from or accrues in Kenya through a digital marketplace at the...
By Victor Orandi On 30th July 2020, the Tax Appeal Tribunal established that a director of a company cannot be held liable for the legal responsibilities of the company to settle its tax liabilities. This was founded in the appeal of Stephen Kimathi Mutiso, a director of a company, against the decision of the commissioner...
The Tax Laws (Amendment) Bill, 2020 (the “Bill”) was assented to by the President on 25th April 2020, as one of the measures to cushion citizens from the negative economic effects of COVID-19. The Tax Laws (Amendment) Act, 2020 (the “Act”) amends provisions on the following: Income Tax, Value Added Tax, Pay As You Earn...
A. CORPORATE AND COMMERCIAL The Companies Act The stake required for an acquiring party to purchase, before enforcing a squeeze-out, has been restored to 90% from the current stake of 50%. This increase in the squeeze-out threshold seeks to restore the protection of the rights of minority shareholders, especially in listed companies. Companies no longer...
Unfortunately whenever civil society and government strike discussions on human rights a certain unease sets in. The mood quickly dampens. On one hand, government mounts a defensive posture and on the other, civil society embarks on an offensive strategy. This gets worse when you throw in the word taxation. Like a spark to an inflammable...
