Tax Blog

INCOME TAX EXEMPTION – The incomes generated by not-for-profit organizations (NPOs) are exempted from taxation in Kenya. The income of an institution, body of persons or irrevocable trust is exempted from taxation provided the body is of a public character is established solely for the purposes of the relief of the poverty or distress of...... Continue reading→

Layman’s definition of tax avoidance is reducing a tax payer’s liability without breaking the law. This is the most likely definition availed by search engines over the internet, you can try. Thus, tax avoidance sounds legal. Proponents of this argument quickly contrast tax avoidance with tax evasion by pointing out that tax evasion is illegal...... Continue reading→

When the 2019/2020 revenue performance was published, everyone was shocked as the performance was fairly above the expectations of many. Despite the Covid-19 pandemic striking and paralysing economic activities towards the end of the third quarter of the financial year, the country’s resilient economy still managed to release Ksh. 1.607 trillion in revenue. According to...... Continue reading→

“The future is digital, prepare for a digital future’’ we have heard this clarion call over and again. While trying to figure it out, we are already in that future. The digital revolution is here with us, strongly altering our social order and inspiring undreamed-of business models. All economic activities have gone digital including elementary...... Continue reading→

The newly introduced minimum tax raises two contrasting perspectives to business losses. The opponents of this tax argue against taxing losses while the proponents argue that “losses” have to be taxed. What’s new with minimum tax? Businesses are now charged to tax on gross receipts at a marginal rate of 1%. Businesses are normally taxed...... Continue reading→

The housing shortage in this country is a matter of dire concern. Reuter’s news agency in May 2019 reported that there was an estimated 200,000 annual housing shortfall expected to rise to 300,000 by 2020. One would expect this shortfall to make the mortgage industry quite vibrant. However, that does not seem to be quite...... Continue reading→

On 14th September 2020, the Cabinet Secretary, National Treasury and Planning made the retirement benefits (Mortgage Loans) (Amendments) Regulations, 2020. The regulations made in line with the housing pillar in the big four agenda allow pension scheme members to access up to forty percent of their savings as a mortgage loan. Using retirement savings for...... Continue reading→

Gone are the days when white color jobs were glorified. The glamour that was associated with permanent and pensionable jobs is slowly fading away too. Business organizations are now preferring to enter into contracts for very specific engagements, primarily to avoid idle staff capacity during low seasons. This has ushered a new twist in the...... Continue reading→

For decades, if not since independence we have been battling perennial budget deficits and counter measures year in year out to overturn the situation. It would have been the case this fiscal year but the COVID-19 disruption threw the fiscal technocrats off balance calling for Solomonic brilliance.  The imminent fiscal strain inspired a raft of...... Continue reading→

Adaptation to new trends for businesses can only mean one thing for tax administrations: implementation of tax administration measures that best suit the digital economy environment. Taxation of transactions taking place over the digital space has been the bane of many tax administrations across the world. The higher the uptake of ecommerce, the higher the...... Continue reading→