This brings to fore, a glaring complexity on the ordinary citizen and professionals alike. It was mainly payable by the europeans and asians but was later on extended to africans. The value added tax act, 2014 the port service charges act cap 264. Amendment of section 5c of finance act 1992 remission or repayment in respect of vehicle registration tax, etc. National flag, emblems and names amendment act, no 10 of 2014. Part iii income tax base division i calculating the income tax base subdivision a total income 5.
Amendment of section 92 of finance act 1989 tax concessions for disabled drivers, etc. Amendment of section 96 of finance act 2001 interpretation part 2 59. This booklet is a guide on the taxation regime in kenya. Laws of kenya value added tax act chapter 476 revised edition 2012 1993 published by the national council for law reporting with the authority of the attorneygeneral. Different rates apply to resident and nonresident companies. Besides, in computing income from business one of the most important items of allowances is the allowance for depreciation, provided by section 32 of the income tax act. Return in relation to registered pension fund, etc. The act is crucial in the collection of income tax in kenya. Throughout the years, amendments to the ita have been made, mainly. Return of income received on account of other persons. The searchable database contains laws, reports, and other civil society legal resources from countries around the world. Jun 12, 2017 tax laws and deadline for payments in kenya.
Employment income is broadly defined and includes amounts paid outside kenya. This post briefly explains the various taxes, the applicable tax rates and important tax dates in kenya. The commencement date was set out as 1st january 1974. The principle law of the income tax act has 14 parts, 3 sections and schedules, all directing its implementation. This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. The author, a senior lecturer of law at the university of dar es salaam, addresses some complex and practical issues about income taxation in tanzania.
An act to make provision for the charge, assessment and collection of income tax, for the ascertainment of the income to be charged and for matters incidental thereto. The bill has collated legal provisions from the income tax act, the value added tax act, 20, the kenya revenue authority act, 1995 and excise duty legislation relating to administration of tax. Theincome tax act on total income, including taxes on gains. The finance act 2014 amended the eighth schedule of the income tax act ita and as a consequence, cgt was reintroduced with effect from 1 january 2015. So you are excused for finding it a bit on the confusing side than helpful. In order to benefit from the amnesty, a taxpayer must submit the tax. This hand book titled domestic tax laws is primarily intended for internal use by officers and staff of the uganda revenue authority. Income tax books on law and business in india jain book agency, delhi based book store for all your books related needs. So you are excused for finding it a bit on the confusing. The purpose of the act was set out as follows right from the start. Reintroduced in the finance act 2014, the withholding tax is meant to ensure all vat due to the taxman from suppliers is paid. All income accruing in, or derived from, kenya is subject to tax in kenya in the same way that applies to the business income of companies.
Pwc kenyas budget bulletin provides insight and reimagine. Kenya income tax rate for 20172018, 20162017, 20152016, 2014 kenya. In 1952, the ordinances were replaced by the east african income tax management act, which laid down the basic legal provisions found in the current income tax law. Income tax act relevant section of the income tax act unless specifically provided the income tax act ita was enacted in 1973, and its effective date of commencement was 1974. National police service commission amendment act, no 3 of 2014. A tax, to be known as value added tax, shall be charged in accordance with the provisions of this act on the supply of goods and services in kenya including anything specified by the minister as such a supply and on the importation of goods and services into kenya. Kra releases guidelines on withholding tax business daily.
Exchange control income tax leaving or having left kenya repealed 148 100. The searchable database contains laws, reports, and. Although great care has been taken to ensure that it reflects the correct wording and numbering of the income tax act, cap. Fringe benefits are taxable on the employee, at either actual or deemed cost. The institute of certified public accountants of kenya established under the accountant act, laws of kenya income tax workshop date. An act to impose a tax upon incomes and to regulate the collection thereof. Every type of employment in kenya is subject to taxation. The act was assented to by the president on 21st december 1973. Income tax is governed under the income tax act cap 470, of the laws of kenya. Amendment of section 101 of finance act 1999 licensing of mineral oil traders 58. Income from dividends 28 7a dividend tax account 29 8. Amendment of section 5d of finance act 1992 repayment of amounts of vehicle registration tax on export of certain vehicles 64.
Exempt income under 1st schedule of income tax act ita e. In addition, the commissioner will waive penalties and interest in respect tax due for years of income 2014 and 2015. Home income tax service tax vat central excise online forms bare acts companies act cpc crpc ipc formats. Agreement entered between nonresident and indian concern or governmenttax rate. Nov 19, 2014 reintroduced in the finance act 2014, the withholding tax is meant to ensure all vat due to the taxman from suppliers is paid. Kenya and considering that the income tax bands are not well expanded and therefore most individuals hit the top tax rate of 30% extension of tax amnesty on foreign income government. A citizens guide to the fascinating though often complex elements of the us tax system. Although great care has been taken to ensure that it. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. The key provisions set out in the bill are summarized in this document. Depreciation is a noncash expense which results from the reductiondiminution in the value of certain capital assets including vehicles etc. The bill has collated legal provisions from the income tax act, the value added tax act, 20, the kenya revenue authority act, 1995 and excise duty legislation relating to administration of tax laws. Where the person submitting the returns seeks to claim.
The reintroduction of the capital gains tax regime in kenya is expected to widen the tax net and increase tax revenue collection for the government. The following are the tax bands effective january 2017 per year. An act to provide for the taxation of incomes and matters connected therewith. National flag, emblems and names amendment act, no 10. The international center for notforprofit laws digital legal library holds nearly 4,000 resources from over 200 countries and territories. Resident and nonresident companies are subject to income tax on income accrued or derived from kenya. Buy incometax act book online at low prices in india. This book is divided into two parts, covering the income tax.
One of the first things you need to find out when you are starting any kind of business, be it a sole proprietor, limited company, partnership among others are the tax laws that apply to your business. National police service amendment act, no 11 of 2014. Kolkata 700001 edition based on provisions applicable for ay 2014 15 references 1. Who will be affected taxpayers, persons working with taxpayers, kra. Collection of tax from persons leaving or having left kenya 146 99. Income tax was introduced in uganda in 1940 by a protectorate ordinance. The principle law of the income tax act has 14 parts, 3 sections and schedules, all directing its. The vat amendment act 2014 came into effect on 29th may 2014. Kenya tax rates for 20162017, 20152016, 20142015 kenya. These are the fundamental laws to be read in conjunction with their respective regulations and. Pay as you earn paye is the tax paid for employment income.
The income tax act hereinafter referred to as the principal act is amended in section 2 cap. Return as to interest paid or credited by banks, etc. A tax payer is also required to preserve books of account and any. This act may be cited as the income tax act, 2018 and shall come into operation on such. Buy online income tax, gst, company law, insolvency. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign. 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. Kenya income tax rate for 20172018, 20162017, 20152016, 2014. An act of parliament to impose a tax to be known as value added tax on. The prescribed unit of currency in books of accounts, records, tax.
Interpretation 1 in this act, unless the context otherwise requires. Apr 12, 2018 the institute of certified public accountants of kenya established under the accountant act, laws of kenya income tax workshop date. Kolkata 700001 edition based on provisions applicable for ay 201415 references 1. One of the first things you need to find out when you are starting any kind of business, be it a sole proprietor, limited company.
Kenya income tax rate for 20172018, 20162017, 20152016. The income tax guide availed by kra is a technical, 57page document, written in court lingo. The book, income tax act provides the readers with elementary and advanced aspects of the income tax act. Mar 08, 2017 this post briefly explains the various taxes, the applicable tax rates and important tax dates in kenya. This book was written after the changes made by the finance act of 2011. An act to continue the existing rates of incometax for the financial year 20142015. In order to benefit from the amnesty, a taxpayer must submit the tax returns or amended tax returns for years of income 2014 and 2015 on or before 30 june 2016. It replaced the east africa income tax management act.
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