Event report
Breakfast Meeting with PKF on 2024 Tax Outlook.
To start the year, we reviewed Kenya 2024 Tax Outlook!
On 12th January 2024, we held a Breakfast Meeting led by Kevin Chege and James Mulili from our Selective Provider member, PKF in Eastern Africa. We delved into the impactful tax measures introduced by the Finance Act, of 2023, effective January 2024, which revealed game-changing tax measures as outlined below:
- Starting January 2024, a 30% EBITDA-based interest cap on foreign loans is expected, and a turnover tax hike to 3% for incomes between KES 1M to 25M.
- Capital allowances also saw adjustments, with a 100% investment deduction limited to specific areas and the reintroduction of a 10% Industrial Building Allowance. The Draft 2024 Budget Policy Statement outlined proposed income tax changes, including a corporate tax rate reduction to 25% and the gradual phasing out of preferential rates.
- The Draft 2024 Budget Policy Statement hinted at a corporate tax reduction of 25%, among other proposals. Looking ahead, the report sheds light on emerging issues, such as tax amnesty until June 2024, the ongoing e-TIMS platform onboarding process and extension of the onboarding deadline to March 31, 2024, with no penalty for non-registered businesses, and revisions in Transfer Pricing and Charitable Organizations Rules.
- The NSSF Contributions structure and Housing Levy Contributions were detailed with major changes, with a court decision on the latter expected on January 26, 2024.
- Lastly, Electronic Tax Invoice Regulations, 2023, bring new requirements for supplier-buyer interactions, emphasizing the need for timely compliance in supplier and buyer interactions.
Thank you to PKF in Eastern Africa for the insightful presentation today! Your expertise illuminated the path through the upcoming tax changes.
Special thanks to all attendees for joining us! Stay tuned for more updates on navigating the evolving tax landscape together!
