Team kubwa team ya power Leo nimecome na highlight ya FINANCE BILL 2025/2026
Unaisupport ama kuna areas unafeel need to be corrected ššš
Key Tax Proposals
- Income Tax Reforms
Tax Loss Carryforward Limitation: Taxpayers will now be limited to a five-year period to carry forward tax losses, replacing the previous indefinite period.
Advance Pricing Agreements (APAs): Introduction of APAs allows taxpayers to enter into agreements with the Kenya Revenue Authority (KRA) on transfer pricing for related-party transactions, valid for five years.
Country-by-Country Reporting (CbCR): Multinational enterprises will be required to submit CbCR, even if their parent entities are in jurisdictions with existing information exchange agreements.
- Digital Economy Taxation
Significant Economic Presence Tax (SEPT): The exemption for non-residents with annual turnovers below KES 5 million is removed, broadening the tax base.
Digital Asset Tax Reduction: The tax rate on digital assets, including cryptocurrencies, is reduced from 3% to 1.5% to encourage virtual asset transactions.
- Withholding Tax Adjustments
Supply to Public Entities: Introduction of withholding tax on payments for goods supplied to public entities.
Scrap Sales: Withholding tax will apply to payments related to the sale of scrap materials.
- VAT and Excise Duty Changes
VAT Refund Period: The period to claim VAT refunds on bad debts is reduced from three years to two years.
Excise Duty Adjustments: Changes in excise duty calculations for products like alcoholic beverages and tobacco aim to increase revenue collection.