Top-Notch Professional consultants

02/06/2021

Updated Resident Corporation Tax Return
PUBLIC NOTICES 01/06/2021

The Tax Laws (Amendment) Act, 2020 amended the rate of Corporation Tax for resident persons from 30% to 25% with effect from 1st April 2020. The rate was reversed to 30% with effect from 1st January 2021 through the Tax Laws (Amendment) (No.2) Act, 2020.
Kenya Revenue Authority wishes to inform the public that the Resident Corporation Tax Return (IT2C) on iTax has now been updated to provide for the above amendments. The following changes have been made to the return: -
1. For resident persons whose accounting period ends on or before 31st March 2020, the applicable corporation tax rate shall be 30%.
2. For resident persons whose accounting period ends between 1st April 2020 and 31st December 2020, the applicable corporation tax rate shall be 25%.
3. For resident persons whose income is earned or accrued after 1st January 2021, the applicable corporation tax rate shall be 30%.
4. For resident persons whose accounting period began in the year 2020 and terminates in the year 2021, the corporation tax rate shall be applied as follows: -
• 25% for income earned in the period prior to 1st January 2021.
• 30% for income earned in the period commencing on or after 1st January 2021.
5. The return shall allow for offsetting of tax credits like Digital Service Tax (DST), Minimum Tax, Advance Tax, Withholding Tax, and Instalment Tax paid during the accounting period, against the established tax liability at the end of the year.
6. Minimum Tax will be captured under the Instalment Tax sheet while DST credits will be captured under row 13.8 in the tax computation sheet.
If you require any further information, feel free to contact: [email protected]

02/06/2021

NSSF NOTICE For all Employers

06/04/2021

Our Service Delivery Charter highlights our commitment to all our customers. Find below information on some of our services.
Clickhttps://kra.go.ke/images/publications/KRA---Citizens-Service-Delivery-Charter.pdf
to access the full service charter

28/01/2021

BENEFICIAL OWNERSHIP INFORMATION SUBMISSION - DEADLINE EXTENSION FOR A PERIOD OF SIX MONTHS WITH EFFECT FROM 1st FEBRUARY 2021
Nairobi, Kenya – 27th January 2021 –
The Business Registration Service (BRS) has received a significantly high number of applications to file Beneficial Ownership Information E-Register at the Companies Registry by persons who are keen to comply with the requirements of the Companies Act, 2015.
As per our previous communication, companies registered under the Companies Act, 2015 and the Companies Act Cap. 486 Laws of Kenya (now repealed) are required under Section 93A to prepare and submit a copy of the Beneficial Ownership registers to the Registrar of Companies within 30 days of its preparation and to notify the Registrar within 14 days of any change in beneficial ownership information. We had previously issued a deadline of 31st January 2021.
Having taken note of the progress made in filing these registers and in the spirit of encouraging compliance with the Companies Act, BRS has in consultation with stakeholders granted a final grace period of six months ending 31st July 2021.
Failure to comply with this requirement after 31st July 2021 makes it an offence to the company and every officer of the company who is in default and such officer will be liable to a fine upon conviction.
We have first operationalized the e-Register for private limited companies and shall progressively operationalize the e-Registers for the other types of companies.
We advise the public to be cautious of persons soliciting money to facilitate them in complying with this requirement. Submission of the beneficial ownership information is a simple process and free of charge that can be undertaken by any company officer/authorized person online by following the step-by-step Beneficial Ownership E- register Manual available at www.brs.go.ke.
BRS would like reiterate for emphasis that the disclosure of the beneficial ownership information is a positive exercise that will promote good governance and increase trust in Kenyan companies and ensure greater transparency of company ownership. This will also support the government in the fight against corruption, money laundering and financing of terrorism.
Finally, we wish to make it clear that the register is not accessible to unauthorized persons but only to competent authorities who may use the register upon request in accordance with the law.
Kenneth Gathuma DIRECTOR GENERAL
SHERIA HOUSE,
HARAMBEE AVENUE
P.O. Box 30031-00100, NAIROBI, KENYA. TEL: +254 20 2227461/2251355/07119445555/0732529995 E-MAIL: [email protected] www.brs.go.ke

Notes to the editor:
About Business Registration Service (BRS)
The Business Registration Service (“BRS” or the Service) is a state corporation established through an Act of Parliament, the Business Registration Act 2015. The Service is under the general supervision of the Office of the Attorney General and Department of Justice.
The Service is mandated to oversee implementation and effective administration of the laws relating to the incorporation, registration, operation and management of companies, partnerships and firms. We also administer the Insolvency Act and the Movable Property Security Rights Act as well as the Hire Purchase Act.
“Beneficial Owner” means the natural person who ultimately owns or controls a legal person or arrangements or the natural person on whose behalf a transaction is conducted, and includes those persons who exercise ultimate effective control over a legal person or arrangements;
FOR MORE INFORMATION, PLEASE CONTACT:
The Director-General email: [email protected] or our Corporate Communication Office,

The Business Registration Service Act, 2015 establishes Business Registration Service (BRS) as a semi-autonomous body under the Office of the Attorney General and Department of Justice.

20/01/2021

Accounting for Corporation Tax (Residents) in
Years of income 2020 and 2021
KRA informs the public on changes to Corporation Tax rates through the Tax Laws
(Amendment) Act published on 25th April, 2020 and the Tax Laws (Amendment) Act No.
2 of 2020 published on 24th December, 2020 which provided for resident corporation tax
rates of 25% and 30% respectively. In light of the above, corporation tax rates shall apply
as follows:
1. 30% on income of a person whose accounting period ended on or before
30th March, 2020.
2. 25% on income of a person whose accounting period ended between 1st
April, 2020 and 31st December, 2020.
3. For persons whose accounting period ends after 1st January, 2021, the
Corporation Tax rate shall be applied as follows;
 25% for income earned in the period prior to 1st January, 2021.
 30% for income earned in the period on or after 1st January, 2021.
Provided that a person to whom (3) applies shall determine the income for the
accounting period and apportion the same between the two periods and charge the
applicable rates.
Further, KRA informs taxpayers that the process of enhancement of the iTax System is
underway to incorporate the interpretation referred to above.
In the intervening period, taxpayers are advised to prepare their accounts and submit
returns through the current iTax system and pay the correct amount of tax. Any
erroneous penalties or interest once validated shall be corrected when the system is fully
deployed

20/01/2021

Change of Tax Rates
Kenya Revenue Authority informs the public on changes of tax rates introduced through
the Tax Laws (Amendment) No. 2 Act of 2020 which was published on 24th December,
2020 with respect to employment income, Corporation Tax, and Legal Notice No. 206 of
2020 on Value Added Tax. The new tax rates replace those introduced in April 2020.
Individual Income Tax Rates
The following tax rates shall apply to individual income with effect from 1st January,
2021. The first monthly PAYE return under the new rate shall be due by 9th February,
2021.
Individual Income Tax Bands and applicable rates
Tax Band Rate of Tax
On the First KShs 24,000 per month or KShs 288,000 per annum 10%
On the next KShs 8,333 per month or KShs 100,000 per annum 25%
On all income amounts in excess of KShs 32,333 per month or
KShs 388,000 per annum
30%
The applicable monthly personal relief is KShs 2,400 per month or KShs 28,800 annually.
Pension Tax Bands
Pension Bands Annual Tax Rates
Any amount in excess of tax free amounts:
On first KShs 400,000 10%
On next KShs 400,000 15%
On next KShs 400,000 20%
On next KShs 400,000 25%
On any amount in excess of KShs
1,600,000
30%
For pension income withdrawn before expiry of 15 years of pensionable service, the new
individual tax bands and rates are applicable on any amount withdrawn in excess of taxfree
amount.
Corporation Tax
The rate of Corporation Tax is 30% of taxable income with effect from 1st January, 2021.
Value Added Tax
The rate of Value Added Tax is 16% with effect from 1st January, 2021. The first return
under the new rate is due by 20th February, 2021.
Minimum Tax
The rate of Minimum Tax is 1% of the gross turnover effective 1st January, 2021. The tax
shall be payable by the 20th day of the 4th, 6th, 9th and 12th month of the accounting
period. However, the Tax Laws (Amendment) No.2 Act, 2020, introduced the following
additional exemptions from Minimum Tax:
Persons engaged in business whose retail price is controlled by government
Persons engaged in insurance business
PUBLIC NOTICES 04/01/2021

20/01/2021

Fringe Benefit Tax (FB), Deemed Interest Rate and Low Interest
Benefit
FRINGE BENEFIT TAX
For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 7%. This rate
shall be applicable for the three months of January, February and March 2021.
DEEMED INTEREST RATE
For purposes of section 16(5), the prescribed rate of interest is 7%. This is applicable for the
months of January, February and March 2021.
Withholding tax rate of 15% on the deemed interest shall be deducted and paid to the
Commissioner by 20th of the month following the month of computation.
LOW INTEREST BENEFIT
For purposes of Section 5(2A) of the Income Tax Act, the prescribed interest rate for the period of
six months (January-June 2021) will be 6%.
PUBLIC NOTICES 19/01/2021

05/01/2021

Take note that pursuant to section 93A of the Companies Act, 2015 (“the Act”) requiring all companies to keep and lodge with the Registrar of Companies a register of its beneficial owners and the gazettement of the enabling regulations, Companies (Beneficial Ownership Information) Regulations, 2020, the Registrar of Companies hereby notifies all Officers of Companies and authorized persons that the Beneficial Ownership (BO) E-Register has been operationalized with effect from 13th October, 2020.)

Every Company should update their BO Register before 31st January 2021 to ensure compliance with the Companies Act, 2015 and to avoid late filing penalty of Kshs 500,000 for first offence and an additional fine of Kshs 50,000 each per day of non-compliance.

25/12/2020

Dear Esteem Clients,

We value our opportunity to serve you and look forward to doing so in the future. May your Christmas be happy and blessed.

Top Notch professionals

17/12/2020

For more insights on DST and VAT on Digital market place join afternoon section through the link provided below:

Who is eligible? How does one register?

Find out all this and more this Thursday by joining our team of experts for a webinar on taxation of the Digital economy. There'll be a morning and afternoon session. You can join using the links below:

Morning: https://cutt.ly/8hFmsMm

Afternoon: https://cutt.ly/YhFmUMm

National Taxpayers Association - NTA

25/11/2020

We manage statutory deductions(PAYE,NSSF and NHIF), VAT, Rental income, capital gain among others on behalf of our clients at affordable fee. You just have to relax! Get in touch with us today.

25/11/2020

We train employers on the following areas,

Pay As You Earn

 Overview of the provisions of the Income Tax Act governing Pay As You Earn tax;
 Fundamental procedures required by the Kenya Revenue Authority (KRA) as expounded in the PAYE Guide;
 Responsibility for administering PAYE;
 Incomes subject to PAYE in Kenya;
 Cash and non-cash benefits and their chargeability to tax;
 Non-taxable and exempt employment incomes;
 Tax planning opportunities available to staff;
 Individual self-assessment returns;
 Common PAYE problems;
 Circumstances that trigger a KRA PAYE audit;
 Penalties for non-compliance with PAYE regulations.