Kenya’s tax regime is set to undergo a number of changes in the coming financial year;
A tax policy is being finalised which will last at least three years to promote predictability of the tax environment. Un predictability and drastic changes in tax laws has been discouraging investment.
VAT on exported services to be removed. Exported services had been classified as general rated supplies in the current Finance Act.
Digital services tax to be dropped in favor of the two-pillar solution currently being developed by the OECD inclusive framework. The two pillar approach aims at addressing the challenges posed by digitalization and international taxation. The first pillar seeks to achieve a consensus-based solution on the international allocation of taxing rights over certain income derived from cross-border activities. The second pillar focuses on increasing the transparency of multinational companies and improving the exchange of information between tax authorities on a global level.
VAT on liquefied petroleum gas (LPG) will be removed
Source Tax News KE
