Key Changes Introduced by the Finance Act, 2021

The Finance Act, 2021, which was assented into law by the President of Kenya on 29 June 2021, makes a raft of changes to Kenya’s tax regime including the Income Tax Act, the Value Added Tax Act, the Tax Procedures Act, the Miscellaneous Fees and Levies Act and the Excise Duty Act, among others. Most amendments proposed under the Finance Bill, 2021 were approved by Parliament as set out, while others amendments we approved with modifications.

While we note that some proposed amendments have been rejected by Parliament, such as the proposed increase of the look back period for tax audits and tax assessments from the current 5 years to 7 years and the proposed increase of excise duty on imported motorcycles, certain new provisions that were not set out in the Bill have been introduced under the Act. The new provisions and amendments which do not relate to amendments proposed under the Bill raise constitutional concerns of lack of public participation, including participation by the relevant stakeholders, in the law-making process.

We have put together a comprehensive analysis of the key amendments that have been introduced by the Act as well as their potential impact on businesses in Kenya. We have also highlighted the key proposals that were set out in the Bill which have been rejected by Parliament or partially adopted.

Read the full article here.


Should you require more information, please do not hesitate to contact Daniel Ngumy or Kenneth Njuguna

 

Daniel Ngumy
Partner
ALN Kenya | Anjarwalla & Khanna

dng@africalegalnetwork.com
Kenneth Njuguna
Partner
ALN Kenya | Anjarwalla & Khanna
kkn@africalegalnetwork.com


*Contributors:
 Dennis Chiruba, Principal Associate | Abdullahi Ali, Trainee Lawyer


The content of this alert is intended to be of general use only and should not be relied upon without seeking specific legal advice on any matter.

Related

Legal alertKenyaBanking, finance & insolvency,Tax