Ask a lawyer:
summarize all sections of the finance bill 2024

The Finance Bill 2024 proposes amendments to various tax laws in Kenya, including the Income Tax Act, Value Added Tax Act, and the Data Protection Act.

Income Tax Act Amendments:

• Introduction of a new tax on digital content creators: The bill proposes a 15% withholding tax on payments made to resident and non-resident individuals and corporations for digital content creation services. (Source: https://bowmanslaw.com/wp-content/uploads/2024/05/Analysis-of-Finance-Bill-2024-13-May-2024_-002.pdf ↗)

• Increase in turnover tax threshold: The bill proposes an increase in the turnover tax threshold from KES 5 million to KES 50 million. This is aimed at supporting small and medium-sized enterprises (SMEs). (Source: https://assets.kpmg.com/content/dam/kpmg/ke/pdf/tax/2024/KPMG%20Kenya%20Finance%20Bill%202024%20Analysis.pdf ↗)

• Introduction of a minimum tax on resident companies: The bill proposes a minimum tax of 1% of gross turnover for resident companies. This tax will apply even if a company declares a loss. (Source: https://bowmanslaw.com/insights/kenya-the-finance-bill-2024/ ↗)

Value Added Tax (VAT) Act Amendments:

• Removal of VAT exemptions: The bill proposes to remove several VAT exemptions, including those on agricultural inputs and machinery. This is expected to increase the cost of production for farmers. (Source: https://bowmanslaw.com/insights/kenya-the-finance-bill-2024/ ↗)

• Introduction of VAT on electronic services: The bill proposes to introduce VAT on electronic services offered by non-resident providers to Kenyan residents. This is aimed at ensuring a level playing field for local and foreign service providers. (Source: https://globaltaxnews.ey.com/news/2024-1032-kenya-proposes-tax-changes-under-the-finance-bill-2024 ↗)

Data Protection Act Amendments:

• Sharing of personal data with third parties: The bill proposes to amend the Data Protection Act to allow the government to share personal data collected for one purpose with third parties for other purposes. This has raised concerns about privacy violations. (Source: https://cipit.org/a-data-privacy-analysis-of-the-kenyan-finance-bill-2024/ ↗)

Other Notable Provisions:

• Increase in excise duty on betting and gaming: The bill proposes to increase excise duty on betting and gaming from 7.5% to 12.5%. This is aimed at discouraging gambling and raising revenue for the government. (Source: https://bowmanslaw.com/insights/kenya-the-finance-bill-2024/ ↗)

• Introduction of a tax on imported fish: The bill proposes to introduce a 20% tax on imported fish. This is aimed at protecting local fish farmers from competition. (Source: https://bowmanslaw.com/insights/kenya-the-finance-bill-2024/ ↗)

The Finance Bill 2024 has been met with mixed reactions, with some stakeholders welcoming the proposed changes while others have expressed concerns about the potential impact on businesses and individuals. (Source: https://nation.africa/kenya/business/finance-bill-2024-concessions-the-questions-that-beg--4662344 ↗)