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Finance Act 2022 Kenya

SUMMARIZED - FINANCE ACT, 2022

Assented on 21st June 2022
  1.  (Finance Act 2022-wef-01-July-2022) other sections and  (Finance Act 2022-wef-01-January-2023)  sections 3, 6, 10, 15, 16, 22(b)(ii) and 32,  
  2. Fair market value, financial derivative & permanent home now defined in Section 2.(ITA)
  3. Gains from financial derivatives now taxed in section 3.(ITA)
  4. Thin Capitalization-if interest > 30% of EBITDA, microfinance & sec16(2)(j)(iii) excluded from thin cap- in Section 4A.(ITA)
  5. ESOP formula change from date Granted to date Exercised, also benefits accrue when Exercised in Section 5.(ITA)
  6. Taxation of Financial derivatives for non-residents in Section 9.(ITA)
  7. Non-resident  with a permanent establishment exempted from DST in Section 12E.(ITA)
  8. Paragraphs (l)-agricultural land, (w)-Donations, (y)-Indefeasible right- amended. Sub-Sections 4E-Tax loss c/f clean up - deleted.. in Section 15.(ITA)
  9. Section 16(2)(j) Amended-More entities exempted from interest restriction-(ITA)
  10. Section 18A Repealed and replaced: Preferential tax regime scope revamped-(ITA)
  11. Section 18B Repealed and replaced-Country by Country Reporting (“CbCR”)-(ITA)
  12. New Sections 18C, 18D, 18E, 18FC inserted on provisions of  (“CbCR”)-(ITA)
  13. New section 28A : Special operating framework arrangement(SOFA)-human Vaccines-(ITA)
  14. Section 31  Amended: Insurance Relief-From he to individual- Gender neutrality-(ITA)
  15. Section 34  :(1)(j)-CGT from 5% to 15% except for firms certified by NIFCA,  (2)(q)-Financial derivatives gains are taxable.(ITA)
  16. Section 35  :(1)(p)-Gains from financial derivatives for non resident taxable...(ITA)
  17. Section 37(3):Deleted: Commissioner can no longer remit any PAYE penalty because its covered under waivers in the TPA...(ITA)
  18. Section 39 :Sub-Sections-(2, 3 and 4)corrected to Sec10(1)(e)...(ITA)
  19. Section 133(6): Extends ID on SGR bulk storage to 31st December 2023...(ITA)
  20. First Schedule New Paragraphs-(61-67)..Deemed interest, Payments, income, Dividends, compensating tax for manufacturers of human vaccines-Tax exempt...(ITA)
  21. Second Schedule -Par(1)-ID for the generation of electrical energy to grid or not, Also ss(1A) introduces 150% ID rate for investment outside Nairobi and Mombasa counties..(ITA)
  22. Third Schedule : New rates: corporate tax: Carbon/emission & Shipping companies-15%, non-resident: deemed interest for bearer bond-7.5% & gains from financial derivatives-15%, ..(ITA)
  23. STAMP DUTY:  Instrument executed in favour of a mortgage refinance company-Exempted*.
  24. Section 5-VATA- In ss(2)(ab)-LPG now taxed at 8% up from 16%,  ss(9)-goods or services except other property are taxable under DST, 
  25. Section 10(1A)-VATA: Reverse VAT on imported services over internet or electronic exempt.
  26. Section 17-VATA Corrections, custom entry as documentation, and excess arises for OAFP.
  27. Section 22-VATA: Imposition of interest and penalties on Imported goods.
  28. Section 30-VATA: Repealed: Refund of tax paid in error no longer applicable. 
  29. Section 34-VATA: VAT registration for dealers in digital marketplace exempted.
  30. First Schedule Part I-  &  Part II VATA: Various amendments. 
  31. Second Schedule Part A-  &  Part B VATA: Various amendments.
  32. Section 10-EDA:  Commissioner to exempt specified products from inflation adjustment.
  33. Section 11-EDA:  Correction in the ex-factory selling price definition.
  34. Section 36-EDA: Administration of interest and penalties on customs duty.
  35. Not Featured here 
  36. Not Featured here
  37. Section 9-TPA: Trusts carrying out business or not to supply of information of change.
  38. Section 31-TPA: Input VAT to be a deduction within six months of the assessment.
  39. Section 40-TPA: Repealed and replaced by new section.
  40. Section 42-TPA: Sub-Sections 6 & 9 amended and 14 added.
  41. Section 42A-TPA: Registered manufacturers with over 3B investment exempted from WHVAT.
  42. Section 47-TPA: Repealed and replaced by new section "Offset or refund of overpaid tax."
  43. Section 47A and 487B-TPA:Added to newly revamped section 47.
  44. Section 51-TPA: Sub-Sections 4, 7, 7A*, 11 & 12* Amended or added*.
  45. First Schedule- TPA: Trust registrations require PIN now.





(Finance Act 2022-wef-01-July-2022) other sections and  (Finance Act 2022-wef-01-January-2023)  sections 3, 6, 10, 15, 16, 22(b)(ii) and 32,  

* Not Featured or published here.




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