We provide a wealth of publications by PwC Kenya providing informed commentary on current developments in the tax arena.
Through analysis and comment on new law and judicial decisions of interest, they assist business executives to identify developments and trends in tax law and revenue practice that might impact their business.
In this alert:
Tax Alert - Tax Appeals Tribunal Judgment: Forex Margins not subject to Excise Duty
The Tax Appeals Tribunal (“TAT”) on 14 March 2025 held that forex margins from currency conversion transactions are not subject to excise duty. This decision provides clarity and certainty, confirming that such margins do not constitute fees or charges for services rendered.
In its assessment, the Kenya Revenue Authority (“KRA”) had alleged that the forex margins earned by the taxpayer constitute part of the fees charged for its international money transfer services and therefore fall within the definition of "other fees" chargeable to excise duty under Paragraph 4 of Part II of the First Schedule of the Excise Duty Act, Cap 472, which subjects "other fees" charged by financial institutions to excise duty at a rate of 20%.
This alert outlines the issues in the case and application of the Excise Duty Act, Cap 472 on forex margins not subject to excise duty.
For more details, please refer to the attached tax alert.
In August 2024, the TAT ruled in favour of the Kenya Revenue Authority, imposing a 20% Excise Duty on fees, including interest, charged by digital lenders.
Effective February 2025, NSSF contributions will increase to a maximum of KES 8,640 from both employees and employers. Court case pending at Court of Appeal.
Recently, the Tax Appeals Tribunal ruled in favor of the Kenya Revenue Authority, by confirming that VAT is chargeable on repossessed motor vehicles auctioned by financial institutions.
The Tax Appeals Tribunal ruled in favor of the taxpayer, setting aside KRA's KES 436M tax demand.
On the first day of his Administration, President Trump signed two Executive Orders signaling a clear change in direction from the Biden Administration on global tax and trade policy.
Kenya ratifies the OECD Multilateral Instrument (MLI), aligning tax treaties with BEPS measures to prevent tax abuse and enhance international tax transparency.
Learn about customs bonds, their requirements, and the implications of non-compliance under the East African Community Customs Management Act.
The Tax Laws Amendment Act, 2024 (“Act”) was assented into law by the President on 11 December 2024.
