Our Blogs

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21

March

TAX

What is the Tax point for Withholding Tax?

The Income Tax Act prescribes varied withholding rates for different payments. In this regard, upon making payment, a taxpayer should withhold tax at a specified rate. For Instance, upon payment of professional fees, a taxpayer should withhold 5% of the same and submit it to KRA on or before the 20th of the consecutive month.

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28

March

Tax point

What is the Tax point for VAT in Kenya?

The Kenyan VAT system is based on the difference between output/VAT on sales and input/VAT on purchases. As such the VAT burden is not borne by businesses but by the final consumer. A VAT registered business dealing with vatable goods or services should charge VAT at the point of making a sale and subsequently pay the said VAT by the 20th of the consecutive month, after deducting any VAT on purchases incurred.

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19

Sep

Business

#TBEACompanyLimitedVSKRA

  • dndiritu@hisibaticonsuting.com
  • 9:30pm - 17:30pm

TBEA was awarded network upgrade works by KPLC

TBEA subcontracted the works to four Chinese companies .Two of them did not have KRA PINS

KRA findings indicated that the companies with PINS were non-resident but had the Permanent establishment (PE), while the companies without PINS were non-resident without permanent establishment.

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21

Sep

Supply

#AfzalIndustrySupplyLimitedVSKRA

  • dndiritu@hisibaticonsuting.com
  • 9:30pm - 17:30pm

AISL was assessed for year 2016 &2017 income tax on 27/11/2018.The assessment was worth KES 79m

AISL objected the assessment but KRA rejected the objection on the basis that the objection did not state the grounds for objection.

This was followed by an agency notice to its bankers on 20/03/2019.

AISL appealed to TATs.

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13

Oct

Banking

KRA v Chase Bank Kenya Ltd

  • dndiritu@hisibaticonsuting.com
  • 9:30pm - 17:30pm

On 7th April 2016, the Central Bank of Kenya in exercise of its mandate appointed Kenya Deposit Insurance Fund ("KDIC") as a receiver of the Chase Bank in the interest of its depositors, creditors and members because it was experiencing liquidity difficulties and it was unable to meet its financial obligations.