The Finance Bill 2016 introduced a provision in the Tax Procedures Act, 2015 which will grant a Tax Amnesty to tax payers who earn taxable income from foreign sources. The Amnesty gives the right to tax payers to declare their foreign income on or before 31 December 2017 in respect of any year ending on or before 31 December 2016. The provisions relating to the Amnesty will come into force on 1 January 2017.
Taxpayers who would like to take up the Amnesty need to consider several issues, including the nature of foreign income which is taxable in Kenya, who would qualify for the Amnesty, the Government policy behind the Amnesty, and the practical steps required to take advantage of the Amnesty in a manner which is not prejudicial to the taxpayer, amongst other important issues. A&K has considered certain salient issues arising from the Amnesty as currently drafted. To read the full Legal Alert, please click here.