Tax Blog

There are certain glaring issues that draw the attention of tax assessors. Whereas these areas do not necessarily indicate that a taxpayer is at fault, it is important for one to be always ready with explanation. As a rule, a taxpayer must always be conscious of the information that the KRA already has either from...... Continue reading→

Do you own a commercial vehicle? Motor vehicle advance tax is due 20 January or before transfer of ownership of vehicle Rates for Advance tax For vans, pick-ups, trucks, prime movers, trailers and lorries; Kshs. 1,500 per ton of load capacity subject to a minimum of Kshs. 2,400 per year of income; For saloons, station-wagons,...... Continue reading→

– Ref Income tax act, CAP 470 Sec 19A (4) A Sacco is a mutual organization (organizations that generate income by trading with their own members). A person is deemed not to have generated income by trading with himself, thus interest income of a SACCO (derived from members) is exempted from taxation The taxable income...... Continue reading→

  STABILITY IN TAX POLICY IS KEY TO INVESTOR CONFIDENCE Every Second Thursday in the Month of June is a special day in Kenya’s fiscal calendar. This is the day everyone waits in awe, for surprises and reliefs, for the hits and misses, for the goodies and losses, all contained in that treasured briefcase from...... Continue reading→

Tax planning can be defining as organizing the financial affairs of a person in the most tax efficient manner possible. Tax planning thus allows the other elements of a financial plan to interact more effectively by minimizing tax liability. It involves an advance assessment on tax implications on various decision alternatives with the objective of minimizing...... Continue reading→

It’s common for service providers and investors to receive from their clients payments slightly less than the invoiced amount.  The reason is, the client is required by law to withholding tax and remit the tax so withheld to the government.    Tax is withheld at different rates depending on the type of income and residential status...... Continue reading→

The modern business environment has been described as volatile, uncertain, complex, and ambiguous (VUCA). Agility and adaptability have become catchy buzzwords in corporate management. Technology is evolving faster than humans can adapt, governments’ appetite for revenue is bursting beyond sustainable levels, job cuts and corporate reorganization have become the order of the day. We have...... Continue reading→

The Kenya Revenue Authority (KRA) has been trending across all media platforms after the commissioner general implied in a media statement that individuals displaying opulence on social media shall be subjected to tax.  This has elicited a lot of excitement with all manner of jokes and memes flowing on social media. The remark by the...... Continue reading→

The world has gone digital, that’s a popular phrase. Going digital has two dimensions; one digitization which is changing from analogue process to a digital one, the second aspect is digitalization which means adoption of modern technology to change a business model. Thus digitization is an overhaul of an old process while digitalization is augmenting...... Continue reading→

Kenya’s economy is among world economies that Covid-19 has extensively suppressed over the last one year. Thousands have had to contend with substantial pay cuts as their employers endeavored to align to the tough times. In a report released last year, the Kenya National Bureau of Statistics (KNBS) noted that almost 4.64 million people had...... Continue reading→