Income tax act kenya 2015

Kenya finance act 2015 insight diving deep deloitte. Kenya tax rates for 20162017, 20152016, 20142015 kenya. Therefore, every person in kenya should know the basis of that 25% remittance to the government as income tax. The budget statement fy 2015 proposed to introduce a tax procedure bill with a view to harmonize and consolidate the procedural rules that govern tax laws in kenya.

Fortunately for you, there is a fitting free online paye income tax calculator you could use to help you with pinning the numbers where. The tax appeal tribunal act, which entered into operation on 1 april 2015, establishes one tribunal that will hear appeals for all tax areas. The bill published on march 30 amends taxrelated laws including income tax act cap 470, value added tax act of 20, excise duty act 2015. Under the income tax act, as amended by the finance act, 2015, sezs will be exempt from corporate taxation for the first ten years following commencement of. However, if the rent collected exceeds ten million shillings during any year of income, one does not qualify to be in this tax bracket.

However, some procedures were left in the specific tax acts. The act was numbered 896 and published in the official gazette on 1 september 2015. A legal notice issued by the cabinet secretary for finance on 14 january 2016 appointed 19 january 2016 as the date the act came into operation. Cost of living set to fall as low taxes become effective. February 2016 1 as you may already be aware, the tax procedures act no. However, individual landlords or company must voluntarily disclose all undeclared rental income for 2014 and 2015 between july 1, 2015 and june. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Kenya revenue authority lays out rental income tax formula. A new regime for taxation of rental income for residents has been introduced. In kenya, rental income currently is taxable under section 32aiii of the income tax act ita, cap 470 laws of kenya. On th june 1985, the said provisions were suspended thus discontinuing the charge of capital gains tax. An act of parliament to make provision for the charge, assessment and collection of income tax.

The finance bill 2015 proposes new measures which the government hopes will boost the revenues earned from this sector. The finance act 2016 introduced a provision in the tax procedures act no. The government later separated premises and introduced a simplified tax regime for residential rental premises through the finance act 2015. In the tax procedures act 2015, there are various terms used that relate to the application of tax procedures in kenya.

The amendment bill, which was published on march 30, has amended taxrelated laws in kenya including the income tax act cap 470, the value added tax act of 20, the excise duty act 2015, the tax procedures act 2015, miscellaneous levies and fees act 2016 and the retirement benefits act1997. The amendment bill was published on 30th march 2020 to amended kenya tax laws including the income tax act cap 470, the value added tax act of 20, the excise duty act 2015, the tax procedures act 2015, miscellaneous levies and fees act 2016 and the retirement benefits act1997. The tax laws amendment bill, 2020 was published on 30 march 2020 the bill to make amendments to taxrelated laws in kenya including the income tax act cap 470, the value added tax act, 20, the miscellaneous fees and levies act, 2015 and the excise duty act, 2015. The tax laws amendment act, 2020 has introduced amendments to the income tax act, value added tax act, 20, excise duty act, 2015, tax procedures act, 2015, miscellaneous fees and levies act, 2016, kenya revenue authority act, 1995 and the retirement benefits act, 1997. Post continues after photo photo by waka this is an act of parliament. Kam has been advocating for amendments to the vat act 20 in relation to the tax rates for various products.

Capital gains tax was first introduced in kenya in 1975 under the eighth schedule to the income tax act. Exempt income under 1st schedule of income tax act ita e. Tax on capital gains rate % capital gains tax is a tax chargeable on the whole of a gain which accrues to a company or an individual on or after 1st january, 2015 on the transfer of property situated in kenya, whether or not the property was acquired before 1st january 2015. President kenyatta signs vat, paye relief plan in newly. Residential income tax is payable by any resident person who accrues or derives income from the use or occupation of residential property in kenya. The rental income tax is the amount of tax one pays to the government for income that is derived from the use of residential property.

An act of parliament to harmonise and consolidate the procedural rules for the administration of tax laws in kenya, and for connected proposes act no. Kenya taxes income on the basis of residence and source. The intent of the tax amnesty is to ensure that landlords are brought in to. The income tax guide availed by kra is a technical, 57page document, written in court lingo. Legal alert kenya tax amnesty guidelines fail to provide clarity.

This act may be cited as the income tax act, 1973 and shall, subject to the sixth schedule, come into operation on 1st january, 1974, and apply to assessments for the year of income 1974 and subsequent years of income. The sez act comes into operation on 15 december 2015, upon the expiry of 90 days from the date of its publication. The amnesty provisions came into force on 1 january 2017. The finance act of 2015 defines the residential rental income tax as the amount payable from accrued incomes from the residential property within kenya and is not above kshs 10 million per income year. Short title this act may be cited as the tax procedures act, 2015. Kenya imposes new income tax on residential rentals. Kenya income tax rate for 20172018, 20162017, 20152016, 2014 kenya income tax rate 2017 w. Income from certain settlements deemed to be income of settlor. Uhuru signs law for major tax reliefs amid covid19. Kenya income tax act commenced on 1st january 1974 after the dissolution. The president assented to the special economic zone act, 2015 sez act on 11 september 2015 and the act was subsequently published on 15 september 2015. All income which has its source in kenya is taxable in kenya irrespective of whether the person who has earned it is a resident or a non resident s. Finance act 2015 insight 5 residential rental income tax a new regime for taxation of rental income for residents has been introduced. This has negatively affected the paints and resins producers as this is their key raw material.

Incometax act inance act, 2015 xplanatory notes to the provisions of the inance act, 2015 circular no. This tax came about when the finance act 2015 introduced a new section 6a in the income tax act that provides for a. The finance bill 2016 introduced an amendment to the excise duty act 2015 by introducing excise duty on illuminating kerosene 2710. Home income tax service tax vat central excise online forms bare acts companies act cpc crpc ipc formats. The national assembly will, on 8 april 2020, consider and vote on the bill. The measure resident tax payers owning residential properties in kenya that generate income will be taxed at 10% reduced from 12% contained in the finance bill of.

The president of kenya assented to the new tax procedures act, 2015 the act on 18 december 2015. Procedures in all tax acts in kenya were consolidated into this one act. The act was enacted for purposes of harmonizing and consolidating procedural. The income tax bill, 20, which was passed by ghanas parliament on 24 july 2015, was assented to by the president on 1 september 2015. The minister may, by notice in the gazette, prescribe regulations for the better carrying out the provisions of this section. Income tax act, cap 470 is the act of parliament that is used to make it mandatory for all persons who have taxable income in kenya to pay 25% of that income as income tax to the government. Rental income revenue can do better if more landlords pay tax. This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. So you are excused for finding it a bit on the confusing side than helpful. An act to consolidate and amend the law relating to income tax and for other connected purposes.

Effective 1 january 2016, a simplified tax on residential rental income for landlords was introduced whose annual gross rental income is kes 10 million or less. Interpretation 1 in this act, unless the context otherwise requires. Part 1 income tax, corporation tax and capital gains tax. South african institute of chartered accountants integritax newsletter income tax and vat acts online the income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website the consolidated income tax act is available, in a pdf version, under the tax heading on the university of pretoria, laws of sa consolidated legislation website. This act may be cited as the tax procedures act, short title andcommencement. Previously, income tax matters would be heard by the local committee whereas vat matters would. These are the fundamental laws to be read in conjunction with their respective regulations and finance acts. The cabinet secretary for industrialization is expected to.

It will also waive the penalties and interest arising on the tax payable for the 2014 and 2015 year of income. The measure resident tax payers owning residential properties in kenya that generate income will be taxed at 10% reduced from 12% contained in the finance bill of the gross rent received. Post continues after the photo photo by waka understanding of interpretation of the terms is important because of various reasons among them. The tax procedures act tpa 2015 was assented into law on 15th december 2015 and effected through a legal notice issued on 14th january appointing 19th january. Tax procedures act, 2015 tpa was assented to on 15th december 2015 and commenced operations on 19th january 2016. Understanding capital gains tax in kenya sherialaw. Property is defined in the law eighth schedule to the income tax act. This act applies to years of income commencing on or after 1st july, 1997.