RWK Financial Compass

We hope this article finds you well. The Kenya Revenue Authority (KRA) is pleased to announce a significant update in the Value Added Tax (VAT) filing process to enhance efficiency and provide a seamless experience for all VAT-registered taxpayers. Effective January 2024: Pre-filled VAT Returns for Simplified Filing KRA will introduce a transformative change starting from the January 2024 tax period. The VAT return will be pre-filled with tax information available to KRA. This initiative aims to simplify the VAT return filing process, making it more convenient for taxpayers. Electronic Tax Invoicing Requirements: A Reminder of Obligations Taxpayers are reminded of their obligation to issue electronic tax invoices and transmit invoice details to KRA, as prescribed by law. To facilitate compliance, any input VAT claim must be validated through TIMS/eTIMS or against existing customs import declarations for import VAT claims Self-assessment Pre-filled VAT Return: Section 28...

In light of the recent court directive, which mandates the continuation of funding for the Affordable Housing Levy until January 10, 2024, despite its initial declaration of unconstitutionality, several key elements and procedures have been outlined for employers to adhere to. The directive stipulates a deduction percentage of 1.5% from the gross pay of employees, with a corresponding contribution from the employer at an equivalent rate. This court-mandated funding initiative is aimed at sustaining the Affordable Housing Levy and ensuring its continued implementation. Employers are now legally obligated to deduct the specified percentage from their employees' gross pay and promptly remit these funds to the Kenya Revenue Authority, as explicitly outlined by the Ministry of Housing and Urban Development. The Ministry, in its directive, emphasizes the mandatory nature of this process, underscoring that all employers are required to comply with the deduction and remittance of the A...