Summary

The Finance Act, 2023 has been enacted by the Parliament of Kenya to amend various tax laws and duties. It includes amendments to the Income Tax Act, such as new definitions for “winnings” and “digital content monetization”, changes to the taxation of repatriated income, and the introduction of a digital asset tax. Amendments to the Value Added Tax Act involve changes to the time of supply for the national carrier and the treatment of compensation for loss of taxable supplies. The Act also allows registered persons to apply for a refund of tax under certain conditions and requires persons supplying imported digital services to register for value added tax. Amendments are made to the Excise Duty Act, the Tax Procedures Act, and other related laws. The Act introduces the appointment of tax agents for the collection and remittance of rental income tax, establishes a data management and reporting system, and amends various other laws related to fees, levies, housing, alcoholic drinks, pension entitlements, and special economic zones.

Key Insights

The Finance Act, 2023 amends various tax laws in Kenya, including the Income Tax Act and the Value Added Tax Act.

New definitions for “winnings” and “digital content monetization” are introduced in the Income Tax Act.

Changes are made to the taxation of repatriated income and the introduction of a digital asset tax.

The Value Added Tax Act is amended to change the time of supply for the national carrier and the treatment of compensation for loss of taxable supplies.

Registered persons can apply for a tax refund under specified conditions, and persons supplying imported digital services must register for value added tax.

Frequently Asked Questions

What are the key amendments made to the Income Tax Act?

The amendments to the Income Tax Act include the introduction of new definitions for “winnings” and “digital content monetization”, changes to the taxation of repatriated income, and the implementation of a digital asset tax.

What changes are made to the Value Added Tax Act?

The Value Added Tax Act is amended to change the time of supply for the national carrier and the treatment of compensation for loss of taxable supplies. It also requires persons supplying imported digital services to register for value added tax, regardless of their turnover threshold.

What are the conditions for applying for a tax refund?

Registered persons can apply for a tax refund if they have not received payment for a supply after three years or if the recipient of the supply has been placed under statutory management. The application must be made within ten years from the date of supply and in compliance with the Tax Procedures Act.

What are the changes to the Excise Duty Act?

The Excise Duty Act is amended to change the rates of excise duty for various goods and services. Specific details of the changes are not provided in the given text.

What other amendments are made by the Finance Act, 2023?

The Finance Act, 2023 introduces several other changes, including the appointment of tax agents for the collection and remittance of rental income tax, the establishment of a data management and reporting system, amendments to laws related to fees, levies, housing, alcoholic drinks, pension entitlements, and special economic zones.