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summarize all sections of the finance bill 2024
The Finance Bill 2024 in Kenya introduces several tax changes.
Motor Vehicle Tax: The bill proposes a new motor vehicle tax set at 2.5% of the vehicle's value. This tax aims to generate revenue for the government and promote environmental sustainability by discouraging the use of older, more polluting vehicles. (Source: https://kpmg.com/us/en/home/insights/2024/05/tnf-kenya-tax-proposals-finance-bill-2024-pillar-two-global-minimum-tax.html ↗, https://bowmanslaw.com/insights/kenya-the-finance-bill-2024/ ↗)
Withholding Tax on Goods Supplied to Public Entities: The bill proposes changes to the withholding tax rate on goods supplied to public entities. This measure aims to streamline tax collection and ensure timely payment of taxes by government contractors and suppliers. (Source: https://bowmanslaw.com/insights/kenya-the-finance-bill-2024/ ↗)
Taxation of Income from Operation of Digital Marketplace: The bill seeks to clarify the taxation of income earned through digital marketplaces. This provision aims to ensure that businesses operating in the digital economy contribute their fair share of taxes. (Source: https://bowmanslaw.com/insights/kenya-the-finance-bill-2024/ ↗)
Excise Duty on Financial and Telecom Services: The excise duty on financial and telecom services will remain at 15% for money transfer services. This decision aims to maintain stability in the financial and telecommunications sectors while ensuring a consistent revenue stream for the government. (Source: https://www.linkedin.com/pulse/summary-key-proposed-changes-finance-bill-2024-rwkassociatescpak-8cnof/ ↗)
Implementation of Pillar Two Global Minimum Tax: The bill includes provisions for implementing the Pillar Two global minimum tax, which aims to establish a minimum corporate tax rate of 15% for multinational enterprises. This measure aligns Kenya's tax policies with international standards and helps prevent tax avoidance by large corporations. (Source: https://kpmg.com/us/en/home/insights/2024/05/tnf-kenya-tax-proposals-finance-bill-2024-pillar-two-global-minimum-tax.html ↗)
Scrapping the Requirement for Registration of Retirement Funds: The bill proposes to eliminate the requirement for individual retirement funds, pension funds, and provident funds to be registered. This change aims to simplify the regulatory landscape for retirement savings and encourage more people to save for their retirement. (Source: https://globaltaxnews.ey.com/news/2024-1032-kenya-proposes-tax-changes-under-the-finance-bill-2024 ↗)
The Finance Bill 2024 represents a significant step towards achieving the revenue targets set out in the Medium-Term Revenue Strategy (MTRS). The proposed tax changes aim to broaden the tax base, enhance tax administration, and promote investment and economic growth. (Source: https://kpmg.com/ke/en/home/insights/2024/05/kenya-finance-bill-2024-analysis.html ↗)
Answered by mwakili.com