PKF in Eastern Africa
There have been several changes in tax legislation and how the Kenya Revenue Authority (KRA) is handling certain tax matters over the past couple of months. This tax alert gives an overview of these tax changes and developments.
We are pleased to attach the PKF Kenya Budget Review Analysis for the year 2019/2020. The document includes our commentary on the economy as well as the amendments proposed in the Finance Bill, 2019. The Finance Act, 2019 may bring in additional amendments and we will keep you updated on the same.
This journal is an extension to our Feb 19 journal which had put the EFD under spotlight. In this journal we aim to address common questions a taxpayer faces during the process of issuing a tax invoice, claiming the same and mechanics for processing credit notes.
This Tax Alert highlights the facts of the recent High Court ruling on the Double Taxation Agreement between Kenya and Mauritius and the recent developments with respect to Value Added Tax (“VAT”).
The corporate laws and operating environment affecting companies in Kenya are gradually changing as the Government and various stakeholders aim to ease doing business in the Country as well as minimize the related costs for setting up a business. We here below outline the various developments in this second issue.
This issue addresses the Statement of tax accounts and Addressing tax account variances
Tanzania has implemented an electronic fiscal device (EFD) system since 2010. Over the years we have come across taxpayers who have been penalized for improper or negligent use of their EFD.
Through this journal we shed some light on how to manage EFD effectively and we also guide you on how to check compliance boxes to avoid tax repercussions.
Dividend Distribution Tax
With effect from 1 January 2019, The Finance Act, 2018 repealed Section 7A of the Income Tax Act, CAP 470 (ITA) on compensating tax and replaced it with a tax on dividends distributed out of untaxed gains or profits.
The Kenya Revenue Authority (“KRA”) has issued certain clarifications on the operation of the new changes which we highlight in the publication.
In January 2016 the IASB abolished the need for classification of leases as either finance or operating (for lessees) which previously resulted in assets and obligations related to operating leases being left out of the balance sheet. Other than for short term leases and leases of low value assets, lessees will present all leased assets and obligations on the balance sheet with effect from 1 January 2019.
The Finance Act, No. 10 of 2018 (The Act) which was assented on 21 September 2018 amended various tax laws as highlighted in our 2018 Budget Book and Tax Alert Issue No. 5 2018.
Whereas most of the amendments became effective on 1 July 2018, there are a number of amendments which became effective on 1 January 2019. This alert highlights amendments which became effective on 1 January 2019 and the recent developments with respect to Value Added Tax Auto Assessment (“VAA”) among other important developments.
Download the PKF Tax Alert Issue No. 1 of 2019 which elaborates the Amendments that were effective 1 January 2019
IFRS 9 and 15 are now a reality, the effective date is 1 January 2018 and if you are a 31 December 2018 IFRS reporter, your financial statements will need to comply with the requirements of these new standards. This brief edition of iNews seeks to remind all reporters of the key requirements of these new standards and their effect on the financial statements. If you have not already addressed these standards, we suggest that you engage your professional advisors immediately to discuss the impact and next steps.
The Tax Guide includes amendments up to and including the Finance Act 2018 and the Tax Laws (Amendment) Act 2018
The Kenya Revenue Authority (KRA) recently introduced the VAT Auto Assessment (VAA) process, which is a system-based solution that aims at identifying unsupported and fictitious input VAT claims, thereby broadening the tax base and increase revenue collections
PKF firms in Kenya, Uganda, Tanzania and Rwanda are member firms of the PKF International family of legally independent firms. The member firms in Eastern Africa comprise over 30 partners and directors and over 650 professional staff. Since 1964, we have served a wide client profile across diverse industries and sectors in Africa. The firm prides itself in being an equal opportunity, multicultural firm with the majority of its partners born and raised in East Africa. As a result, we have a unique understanding of the local markets that enables us to offer holistic, innovative and relevant business solutions, taking into account the distinct market forces and constraints that come into play within the region.
Tax alert Issue No.5 2018 highlights on The Finance Act, 2018 (Finance Act) that was assented by the President on 21 September 2018 following protracted disapproval by majority of members of the National Assembly. Whereas, the Act faced ‘majority opposition’, the members could not garner the required constitutional threshold to over-turn the President’s memorandum. Some sections of the Finance Act have been received with mixed reactions in many quarters. The proposed changes are likely to lead to an increase in pricing of basic commodities such as cost of transportation, food and electricity.
Tax alert Issue No.4 2018 highlights on the Tax Laws (Amendment) Act, 2018 (The Act) that was assented on 18 July 2018 has amended various provisions of the Income Tax Act (Cap. 470), Stamp Duty Act (Cap. 480) and the Value Added Tax Act, 2013 (No. 35 of 2013).
World growth strengthened in 2017, with a notable rebound in global trade. It was driven by an investment recovery in advanced economies, continued strong growth in emerging Asia, a prominent upswing in emerging Europe, and signs of recovery in several commodity exporters. Global growth is expected to continue to increase this year and next, supported by strong momentum, favorable market sentiment, accommodative financial conditions, and the domestic and international effects of expansionary fiscal policy in the United States.