mwakenya

Income  Tax

1. Medical Benefit Beneficiaries

position in finance bill 2012

The Finance Act 2012 further elaborates  on this provision  by defining “beneficiaries” to include the employee’s spouse and not more than four children whose age shall not exceed twenty-one years.

Effective Date

 9 June 2011

2. Withholding Tax on winnings from betting and gaming

 position in finance bill 2012

The Finance Bill 2011 introduced withholding  tax at a rate of 20% on winnings by residents from betting and gaming. the 2012 bill extended to include non-residents too

effective Date

Minister to advise on the effective  date through the Kenya Gazette notice

3.Deemed Interest

position in finance bill 2012

the Finance Bill 2011 also introduced  withholding  tax at the rate of 15% on this deemed interest.

in the Income Tax Act had not been appropriately amended to make such deemed interest taxable. This has now been amended in the Finance Act 2012.

effective Date

9 June 2011

4.Self-assessment returns for employees

position in finance bill 2012

Employees whose only income comprises emoluments from employment on which tax has been deducted under PAYE, will not be required to file annual self-assessment  returns.

The Finance Act 2012 elaborates on this amendment  further by clarifying that this provision  only applies to an employee who is employed by or renders  services to one employer

effective Date

 9 June 2011

5.Withholding tax on management or professional  or training fees

 position in finance bill 2012

The Finance Act 2012 has now repealed  this amendment (2011 ammendment)  with the rate being reverted  back to the 5%.

effective Date

Effective immediately

6. Electronic TaxRegisters (ETR)

 position in finance bill 2012

The Finance Act 2012 has introduced  the requirement forGeneral Packet Radio Service (GPRS) enabled  ETR machines

effective Date

2 May 2012

7.Installation of metering devices by excise licensees

 position in finance bill 2012

The Finance Act 2012 has amended the Customs & Excise Act in regard to the requirement of installation of metering devices by an excise licensee. Previously , one had to comply with this requirement upon the expiry of six months from the date of publication in the gazette.

This has now been amended to permit upon application to the Commissioner,  an extension of a further period not exceeding six months, upon expiry of the date

of publication in the gazette.

effective date

 2 May 2012