Widespread Consultancy Services Limited

A sigh of relief to Taxpayers

Effective January 1st 2024, business expenditure not supported by a valid electronic tax invoice shall not be deductible for income tax purposes.

Contact us on 0735441036 for more insights on this.

Finance Act 2023

Changes introduced by Finance Act 2023 that will be implemented effective 1st January 2024:

✓Taxation of Repatriated Income for Non-residents.
The Act Introduced the taxation of repatriated income for non-residents with a permanent establishment in Kenya at a rate of 15% and reduced their Corporate Income Tax (CIT) rate to 30% from 37.5%. Effective date 01/01/2024.

✓Interest on Mortgages
Individuals to claim mortgage interest expense to a maximum of Kshs 300,000 per year incurred on money borrowed from a co-operative society.Effective date: 1st January, 2024

✓Filing of Income Tax Returns
Any expenditure or loss shall be not deductible if the invoices of the transactions are not generated from electronic tax invoicing management (e-TIMS). Effective date: 1st January, 2024

✓Corporate Income Tax on Vaccines
Introduce CIT rate of 10% for companies undertaking the manufacture of human vaccines. Effective date: 1st January, 2024

✓Rental Income
Residential Rental income tax (MRI) rate reduced from 10% to 7.5%. Effective date: 1st January, 2024

✓WHT on Immovable Property
Withholding tax on payments for use of immovable property reduced from 10% to 7.5%.
Effective date: 1st January, 2024

Happy Holidays!

https://www.kra.go.ke/popular-links/guidelines-on-tax-amnesty-2023-2024

Guidelines on Tax Amnesty 2023/2024 - KRA The Finance Act 2023 introduced a tax amnesty for interest and penalties on tax debt by inserting Section 37E to the Tax Procedures Act, 2015. The amnesty is applicable to: