Taxation important point on 2023 financial Bill. The financial Bill 2023 has proposed a raft of changes on tax man.
In the bill, here are summary of important parts that you need to know as a Kenyan
In the 2023 financial, the treasure is proposing to tax individuals as follows:
- On the first Ksh. 288,000 10%
- On the next Ksh. 100,000 25%
- On next income over Ksh. 5,612,000. 30%
- On all income over 6,000,000 35%
Treasury has also proposed 3.0% deduction of one’s basic salary towards the National Housing Development Fund matched by another 3.0% from the employer. There are 4 exit routes after 7 years or upon retirement whichever comes first.
Through amendment of the Income Tax Act, the National Treasury has proposed that turn-over tax be revised from the present 1.0% to 3.0%. More importantly, it wants the band eligible for turnover tax changed from Kes 1M – 50M to Kes 500,000 – Kes 15M.
The Treasury has proposed to do away with the annual inflation adjustment of excise tax by repealing Section 10 of the Excise Duty Act, to what is believed to be a much needed relief.
Treasury is also seeking to empower KRA to require tax payers IN ANY SECTOR to remit excise duty collected on certain excisable services within 24 hours.
A proposal has been made by the Treasury to have anyone advancing a tax dispute to the Tax Appeals Tribunal deposit 20.0% of the disputed amount, or any security equivalent to the same amount, with the Commissioner.
Treasury is seeking to widen the taxe net by including the digital content creators. According to the proposed bill Tax payments relating to digital content monetisation into the withholding tax at a rate of 15%.
The Treasury has listed digital assets as cryptocurrencies, token code, non-fungible token or any other token of similar nature.
Value Added Tax on exported services has also been revised.
