• Service: Tax, Global Indirect Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 6/17/2014

Kenya - Tax proposals in 2014-2015 budget 

June 17:  Kenya’s budget for 2014-2015, presented 12 June 2014, includes the following tax proposals:
  • A proposal to amend the income tax law to require both local and foreign companies to provide the tax administration with up-to-date information on the changes in their business and corporate structures—generally in line with requirements for transparency under the proposed OECD Base Erosion and Profit Shifting action plan
  • A proposal for corporation tax to be levied on the net-gain arising from the sale of shares or property in oil and mineral prospecting companies at 30% for resident companies and 37.5% for non-resident companies (previously, sale proceeds were taxed under the withholding tax regime at the rate of 10% for resident companies and 20% for non-resident companies)
  • An anticipated review of the current definition of a permanent establishment to restrict the transactions between related parties and their local establishments to arm’s length price
  • A proposal that vacations paid for by employers for their employees will be an allowable deduction for the employer (to apply for a 12-month period beginning 12 June 2014 to 11 June 2015)
  • A proposal to increase the customs duty rate on the importation of steel and iron to 25% (currently ranging between 0% - 10%)

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