The Finance Act 2022 - as Plain Text by MWakili

NATIONAL COUNCIL FOR LAW REPORTING LIBRARY SPECIAL ISSUE Kenya Gazette Supplement No.

106 (Acts No.

22) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT ACTS, 2022 NAIROBI, 23rd June, 2022 CONTENT Act PAGE 249 The Finance Act, 2022 az) 08 JUL P.O.

Liox 0, k.

NAR TEL: 271925-i FAX: PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI 249 THE FINANCE ACT, 2022 No.

22 of 2022 Date of Assent: 21st June, 2022 Date of Commencement: See Section 1 AN ACT of Parliament to amend the laws relating to various taxes and duties; and for matters incidental th er eto ENACTED by the Parliament of Kenya, as follows PART I - PREL IM INARY Short title and 1.

This Act may be cited as the Finance Act, 2022 com m encem ent.

come and shall come into operation or be deemed to have into operation as follows the (a) sections 3, 6, 10, 15, 16, 22(b)(ii) and 32, on 1st January, 2023; and (b) all other sections, on the 1st July, 2022.

PART n - INCOM E TAX of 2.

Section 2 of the Income Tax Act is amended by Amendment inserting the f ollowing new definitions in proper alphabetical sequence fair market value means the comparable market between price available in an open and unrestricted market no independent parties acting at arm's length and under of compulsion to transact, which is expressed in terms money or moneys worth; financial derivative means a financial instrument the value of w hich is link ed to the value of another instrument af uture underlying the transaction which is to be settled at date; and permanent home means a place where an individual resides or w hich is av ailable tot hat i ndividual f or of residential purposes in Kenya, or where in the opinion the Commissioner the individuals personal or economic i nterests are closest.

Amendment of 3.

Section 3 of the Income T ax A ct is amended in section 3 of Cap.

subsection (2) by adding the following new paragraph 470.

immediately after paragraph (h) 250 Finance 2022 No.

22 (i) gains from financial derivatives, excluding fi nancial derivatives traded at t he N airobi Securities Exchange.

Amendment of 4.

Section 4A of the Income T ax A ct is amended in- section 4A of Cap.

470.

(a) in subsection (1) by deleting subparagraph (ii) (a) of the proviso and substituting therefor the following new subparagraph- (a) where a foreign exchange loss is realized by a company whose gross interest paid or payable to related persons and third parties exceeds thirty per cent of the companys earnings before interest, taxes, depreciation and amortization in any financial year; (b) in subsection (4) in the definition of the term company by inserting the words or non deposit taking microfinance businesses under the Microfinance Act, 2006, entities licensed under the Hire Purchase Act and persons exempt under section 16 (2) (j) (iii) immediately after the expression Banking Act (Cap.

488).

Amendment of 5.

Section 5 of the Income T ax A ct is amended section 5 of Cap.

470.

the (a) in subsection (5), by deleting paragraph (a) of proviso and substituting therefor the following new paragraph (a) in the case of an employee share ownership plan, the value of the benefit shall be the difference between the offer price, per share, at the date the option is granted by the employer, and the market value, per share on the date when the employee exercises the option; (b) in subsection (6), by deleting paragraph (a) and substituting therefor the following new paragraph (a) the benefits chargeable shall be deemed to have accrued on the date the employee exercises the option.

Amendment of 6.

Section 9 of the Income Tax Act is amended by section 9 of Cap.

470.

adding the following new subsections immediately after subsection (2) 251 2022 F inance No.

22 (3) Where a resident person enters into af inancial derivatives contract with a non-resident person, any gain accruing to the non-resident person from that arrangement shall be subject to tax at the rate specified in the Third Schedule.

(4) The provisions of subsection (3) shall be carried out in accordance with Regulations made by the Cabinet Secretary.

Amendment of 7.

Section 12E of the Income Tax Act is amended by section 12E of inserting the following proviso to subsection (1) Cap.

470.

Provided that this section shall not apply to a non resident person with a permanent establishment in Kenya.

Amendment of 8.

Section 15 of the Income Tax Act is amended section 15 of Cap.

470.

(a) in subsection (2) (i) by deleting the words as defined in the Second Schedule appearing in paragraph (1); (ii) by deleting paragraph (w) and substituting therefor the following new paragraph (w) any donation in that year of income to a charitable organization whose income is exempt from tax under paragraph 10 of the First Schedule to this Act, or to any project approved by the Cabinet Secretary responsible for matters relating to finance; (iii) by deleting paragraph (y); (b) by deleting the subsection (4A).

Amendment of 9.

Section 16 of the Income Tax A ct is amended in section 16 of Cap.

470.

the proviso to subsection (2)(j ) by adding the following new subparagraphs immediately after subparagraph (iii)(B)- (C) microfinance institutions licensed and non deposit taking microfinance businesses under the Microfinance Act, 2006; No.

19 of 2006.

(D) entities licensed under the Hire Purchase Act; Cap 507 (E) non-deposit taking institutions involved in lending and leasing business; 252 F inance 2022 No.

22 (F) companies undertaking the manufacture of human vaccines; (G) companies engaged in manufacturing whose cumulative investment in the preceding five years from the commencement of this provision is at least five billion shillings; (H) companies engaged in manufacturing whose cumulative investment is at least five billion shillings; Provided that the investment shall have been made outside Nairobi City County and Mombasa County; and Cap.485 A (I) holding companies that are regulated under the Capital Markets Act.

and 10.

The Income Tax Act is amended by repealing sS nTsAof section 18A and replacing it with the following new section Cap.

470.

Ascertainment of 18A.

(1) Where- gains and profits of business in a preferential tax regime.

(a) a resident person carries on business with a related r esi dent person operating in a preferential tax regime; or (b) a resident person carries on business with (i) a non-resident person located in a preferential tax regime; or (ii) an associated enterprise of a non-resident person located in a preferential tax regime; or (iii) a permanent establishment of a non-resident person operating in Kenya where the non resident person is located in a preferential tax regime, and the business produces no gains or produces less gains than those which would have 253 2022 F inance No.

22 been expected to accrue from that business if the business activity was not with a party in a preferential tax regime, the gains of that resident person from that business shall be deemed to be the amount which would have been expected to accrue if that business had been conducted by an i ndependent person dealing at arms length, or if none of the parties were located in a preferential tax regime.

(2) For the purposes of this section, preferential tax regime means (a) any Kenyan legislation, regulation or administrative practice which provides a preferential rate of tax to such income or profit, including reductions in the tax rate or the tax base; or (b) a foreign jurisdiction which (i) does not tax income; (ii) taxes income at a rate that is less than twenty per cent; (iii) does not have a framework for the exchange of information; (iv) does not allow access to banking information; or on (v) l acks transparency corporate structure, ownership of l egal entities l ocated therein, beneficial owners of income or capital, fi nancial disclosure, or regulatory supervision.

254 F inance 2022 No.

22 Repeal and 11.

The Income Tax Act is amended by repealing substitution of section 18B of section 18B of the Act and substituting therefor the Cap.

470.

following new section Application of 18B.

The provisions of sections, 18C, sections 18C, 18D, 18E and l 8F.

18D, 18E, and 18F shall apply to returns for the year of income 2022 and subsequent years of income.

I nsertion of new 12.

The Income Tax Act is amended by inserting the sections 18C, following new sections immediately aft er section 18B 18D, 18E and l 8F in Cap.

470.

Notification to the 18C.

(1) A multinational enterprise Commissioner.

group or a constituent entity, other than an excluded multinational enterprise group, that is resident in Kenya, shall notify the Commissioner, not later than the last day of the reporting financial year of that group (a) whether or not it is the ultimate parent entity of the group; (b) in case it is not the ultimate parent entity of the group, whether or not it is a surrogate parent entity; or (c) in case paragraphs (a) and (b) do not apply, the i dentity of the constituent entity which is the ultimate parent entity or surrogate parent entity and the tax residence of that constituent entity.

(2) The notification referred to in subsection ( 1) shall be made to the Commissioner in such f orm as the Commissioner may specify.

Filing of country-by- 18D.

(1) An ultimate parent entity or a countiy report, master fi le and local file.

constituent entity of a multinational enterprise group with a gross turnover of ninety-five billion shillings (including extraordinary or investment income) that is resident in Kenya shall file a country-by- country report with the Commissioner of its financial activities in Kenya and for all other 255 2022 F inance No.

22 juri sdiction where the group has taxable presence.

(2) An ultimate parent entity shall file the country-by-country report referred to under subsection (1) not later than twelve months after the last day of the reporting finaneial year of the group.

(3) In addition to the provisions in subsection (1), an ultimate parent entity or a constituent entity of a multinational enterpri se group shall file a master file and a local f ile to the Commissioner in such manner as the Commissioner may specify.

(4) The master file and the local file shall be filed not later than six months after the last day of the reporting financial year of the multinational enterpri se group.

(5) A country-by-country report filed under subsection (1) shall consist of (a) the information relating to the identity of each constituent entity, its j uri sdiction of tax residence, if different, juri sdiction where such entity is organized, and the nature of the main business activity or activities of such entity; (b) the group's aggregate information including information relating to the amount of revenue, profi t or loss before income tax, income tax paid, income tax accrued, stated capital, accumulated earnings, number of employees and tangible assets other than cash or cash equivalents with regard to each j uri sdiction where the group has taxable presence; and (c) any other information as may be required by the Commissioner.

256 2022 Finance No.

22 (6) A master file under subsection (3) shall contain (a) a detailed overview of the group; (b) the groups growth engines; (c) a description of the supply chain of the key products and services; (d) the groups research and development policy; (e) a description of each constituent entitys contribution to value creation; (f) information about intangible assets and the group i ntercompany agreements associated with them; (g) information on any transfer of intangible assets within the group during the tax period, including the identity of the constituent entities i nvolved, the countries in which those i ntangible assets are registered and the consideration paid as part of the transfer; (h) information about f inancing activities of the group; consolidated fin an ci al (i) the statements of the group; (j) tax rulings, if any, made in respect of the group; and (k) any other i nformation that the Commissioner may require.

(7) A local file under subsection (3) shall contain (a) details and i nf ormation on the resident constituent entitys activities w ithin the multinational enterprise group; (b) management structure of the resident constituent entity; I 257 2022 Finance No.

22 (c) business strategies including structuring, description of the material-controlled transactions, the resident constituent entitys business and competitive environment; (d) the i nternational transactions and amounts paid to the resident constituent entity or received by the entity; and (e) any other i nformation that the Commissioner may require.

(8) Where there are more than one constituent entities of the same multinational enterprise group that are resident in Kenya, the multinational enterprise group may designate one of such constituent entities as a surrogate parent entity.

(9) A resident surrogate parent entity of a multinational enterprise group shall not be required to file a country-by- country report with the Commissioner with respect to the reporting financial year of the group, if (a) the ultimate parent entity is obligated to file a country-by- country report in its j urisdiction of tax residence; (b) the j urisdiction in which the ultimate parent entity is resident for tax purposes has an international agreement and a competent authority agreement in force; and (c) the Commissioner has not notified the resident constituent entity in Kenya of a systemic failure, if any.

(10) A resident constituent entity of a multinational enterprise group shall not be required to file a country-by-country report 258 F inance 2022 No.

22 with the Commissioner with respect to the reporting financial year of the group, if (a) a non-resident surrogate parent entity files the country-by-country report on the group with the competent authority of the tax j urisdiction of the entity; (b) the j urisdiction in which the non resident surrogate parent entity is resident requires the filing of country-by-country reports; (c) the competent authority of the j urisdiction in which the non resident surrogate parent entity is resident and Kenya have a competent authority agreement for the exchange of information; (d) the competent authority in the j urisdiction where the non-resident surrogate parent is resident has not notified Kenya of a systemic failure; or (e) the non-resident parent entity has notifi ed the competent authority in the j urisdiction of its tax residence that the entity is the designated surrogate parent entity of the group.

(11) The Commissioner shall maintain the confi dentiality of the i nformation contained ina return submitted in accordance with section 6(1) and section No.

29 of 20 15.

6A(2) of the Tax Procedures Act, 2015.

Offences and 18E.

A person who fails to comply penalties.

with the provisions of sections 18C and 18D commits an offence and shall be subject to No.

29 of 20 15.

the penalties prescribed under the Tax Procedures Act, 2015.

Defl nitions.

18F.

For the purposes of sections 18C, 18D and l 8E - 259 2022 Finance No.

22 .99 competent authority agreement means an agreement between authorized representatives of jurisdictions which are parties to an international agreement that requires the exchange of country-by-country reports; 99 consolidated fi nancial statements means fi nancial statements of a multinational enterprise group in which the assets, liabilities, income, expenses and cash flows of the ultimate parent entity and the constituent entities are presented as those of a single enterprise; constituent entity means (a) any separate business unit of a multinational enterprise group that isi ncluded in the consolidated financial statements of the multinational enterprise group for fl nancial reporting purposes, or which would be so included if equity interests in such business unit of a multinational enterprise group were traded on a public securities exchange; (b) any such business unit that is excluded fr om t he multinational enterprise groups consolidated financial statements solely on size or materiality grounds; (c) any permanent establishment of any separate business unit of the multinational enterprise group included in paragraphs (a) or (b) provided that the business unit prepares a separate fi nancial statement for such permanent establishment f or fi nancial reporting, regulatory, tax reporting, or internal management control purposes; 260 Finance 2022 No.

22 a country-by-country report means a report filed under section 18D(1) describing the financial activities of each constituent entity in all the j urisdictions where the group has taxable presence; a excluded multinational enterprise group means, with respect to any financial year of the group, a group having total consolidated group revenue of less than the amount specified in section 18D(1); group means a collection of enterpri ses related through ownership or control such that it is either required to prepare consolidated financial statements for financial reporting purposes under applicable accounting pri nciples or would be so required if equity interests in any of the enterpri ses were traded on a public securi ties exchange and includes a single enterpri se with one or more foreign permanent establishments; international agreement means a bilateral or multilateral tax agreement to which Kenya is a party which provides for the exchange of tax information between Kenya and other jurisdictions; l ocal file means a file under section 18D(7) containing materi al transactions of the local taxpayer; master f ile means a file under section 18D(6) containing standardized information relevant for all multinational enterpri se group members; multinational enterpri se group means a group that i ncludes two or more enterprises which are resident in different juri sdictions including an enterpri se that carri es on business through a permanent establishment or through any other entity in another juri sdiction; 261 2022 F inance No.

22 report ing financial year means an annual accounting period with respect to which the ultimate parent entity of the multinational enterprise group prepares its financial statements; surrogate parent entity means one constituent entity of the multinational enterprise group appointed by such group to file Ae country-by-country report in that constituent entitys j urisdiction of tax residence, on behalf of the group; systemic failure means failure to comply with the competent authority agreement for reasons other than those provided in the agreement; ultimate parent entity means an entity that (a) is resident in Kenya for tax purposes; (b) is not controlled by another entity; and (c) owns or controls a multinational enterprise group.

I nsertion of new 13.

The Income Tax Act is amended by insert ing the section into Cap.470.

following new section immediately aft er section 28- Special Operating 28A.

A company which - Framework Arrangement (a) is engaged in business under a special operating f ramework arrangement with the Government; (b) incorporated for purposes of undert aking the manufacturer of human vaccines; (c) whose capital investment is at least ten billion shillings, shall be subject to the rate of tax specified in the special operating framework arrangement with the Government.

I 262 2022 F inance No.

22 Amendment of 14.

Section 31 of the Income Tax Act is amended in section 31 of Cap.

a 470.

subsection (1) (a) by deleting the words he has paid the premium for an insurance made by him on his life or therefor the life of his wife or of his child and substituting words the individual has paid a premium for an insurance the life of made by the individual on the individuals life or the individuals spouse or child.

Amendment of 15.

Section 34 of the Income Tax Act is amended section 34 of Cap.

470.

(a) in subsection (1), by deleting the expression five per cent appearing in paragraph (j ) and substituting therefor the expression fifteen per cent ; (b) by inserting the following proviso to paragraph CD- Provided that in the case of a firm certified by the Nairobi International Financial Centre Authority that (a) invests fi ve billion shillings in Kenya; and (b) the transfer of such investment is made after fi ve years, the ^ plicable rate shall be the rate that was prevailing at the time that the investment was made, (c) in subsection (2), by inserting the following new paragraph immediately after paragraph (p) (q) gains from fi nancial derivatives.

Amendment of 16.

Section 35 of the Income T ax A ct is amended in section 35 of Cap.

470.

subsection (1) by adding the following new paragraph immediately after paragraph (o) - (p) gains from fi nancial deri vatives.

Amendment of 17.

Section 37 of the Income Tax Act is amended by section 37 of Cap.

470.

deleting subsection (3).

Amendment of 18.

Section 39 of the Income T^ A ct is am ended section 39 of Cap.

470.

(a) in subsection (2), by deleting the expression section 10(e) and substituting therefor the expression section 10(1 )(e); 263 2022 F inance No.

22 (b) in subsection (3), by deleting the expression section 10(e) wherever it appears and substituting therefor the expression section 10(l )(e) ; and (c) in subsection (4), by deleting the expression section 10(e) and substituting therefor the expression section 10(l )(e).

Amendment of 19.

The Income Tax Act is amended in section 133 by section 133 of deleting the expression 31st December, 2022 and Cap.470 substituting therefor the expression 31st December, 2023.

Amendment of 20.

The First Schedule to the Income Tax Act is the First Schedule amended by inserting the following paragraphs to Cap.

470.

immediately after paragraph 60 61.

Deemed interest in respect of an interest free loan advanced to a company undertaking the manufacture of human vaccines.

62.

Payments made to non-resident service providers not having a permanent establishment in Kenya in respect of services provided to a company undertaking the manufacture of human vaccines.

63.

Compensating tax accruing to a company undertaking the manufacture of human vaccines.

64, Dividends paid by a company undertaking the manufacture of human vaccines to any non resident person.

65.

Income of a company undertaking the manufacture of human vaccines.

66.

Dividends paid by Special Economic Zone enterprises, developers and operators licensed No.i6of20i5 under the Special Economic Zones Act.

67.

Dividends paid by Special Economic Zone enterprises, developers and operators to any non resident person.

of 21.

The Second Schedule to the Income Tax Act is Amendment the Second amended Schedule to Cap.

470.

264 2022 F inance No.

22 (a) in the proviso to paragraph (1), by deleting the words for supply to the national grid appearing in the definition of manufacture ; (b) at the end of the proviso to subsection (lA) by inserting the following words or t he i nv estm ent deduction shall be one hundred and fi fty per cent where the cumulative investment value for the preceding four years from the date that this provision comes into f orce or t he cumulative investment for t he succeeding three years outside Nairobi City County or Mombasa County is at least two billion shillings Amendment of 22.

The T hird Schedule to the Income Tax A ct is the Third amended - Sehedule to Cap.

470.

(a) in paragraph 2, by inserting the following new items immediately after item (m) (n) in respect of a company operating a carbon market exchange or emission trading system that is certifi ed by the Nairobi International Financial Centre Authority, fifteen per cent for the fi rst ten years from the year of commencement of its operations; (o) in respect of a company operating a shipping business in Kenya, fifteen per cent for the fi rst ten years from the year of commencement of its operations; (b) in paragraph (3) - (i) by inserting the following item in paragraph (e) immediately after item (i)- (ia) in respect of i nterest and deemed interest arising from a bearer bond issued outside Kenya of at least two years duration and interest, discount or original issue discount, seven and a half per cent of the gross sum payable; (ii) by i nserting the f ollowing new i tem immediately after item (q) 265 2022 Finance No.

22 (r) in the case of gains from financial derivatives, fifteen per cent of such gains.

PART DI - STAM P DUTY Amendment of 23.

Section 117 of the Stamp Duty Act is amended in section 117 of subsection (1) by inserting the following new paragraph Cap.

480.

immediately after paragraph (p) (q) an instrument executed in favour of a mortgage refi nance company.

PART IV - VALUE ADDED TAX Amendment of 24.

Section 5 of the Value Added Tax Act, 2013 is section 5 of No.

amended- 35 of 20 13.

(a) in subsection 2 by inserting the following new paragraph immediately after paragraph (aa) (ab) in the case of the supply of l iquefi ed petroleum gas including propane, eight percent; (b) in subsection (9) by deleting the words sell or provide services, goods or other property and substituting therefor the words sell goods or provide services.

Amendment of 25.

Section 10 of the Value Added Tax Act, 2013 is section 10 of No.

35 of 20 13.

amended by inserting the following new subsection immediately after subsection (1) (lA) The provisions of subsection (1) shall not apply to taxable supplies made under section 5(7).

Amendment of 26.

Section 17 of the Value Added Tax Act, 2013 is section 17 of No.

amended 35 of 20 13.

(a) in subsection (1), by inserting the words in a return for the period immediately after the words deducted by the registered person; (b) in subsection (3), by inserting the following new paragraph immediately after paragraph (e) (f) in the case of a participant in the Open Tender System for the importation of petroleum products that have been cleared through a non- bonded facility, the custom entry showing the name and PIN of the winner of the tender and 266 2022 F inance No.

22 the name of the other oil marketing company participating in the tender: Provided that the input tax that may have been incurred by an oil marketing company participating in the Open Tender System before the coming into force of this provision shall be claimed within twelve months after this provision comes into force.

(c) in subsection (5), by inserting the following new paragraph immediately after paragraph (d) (e) such excess arises from input tax under subsection (8): Provided further that a registered person who, since the commencement of subsection (8) but before the commencement of this provision, has a credit arising from input tax under subsection (8) may apply for the refund of excess tax within twelve months from the commencement of this provision.

Amendment of 27.

Section 22 of the Value Added Tax Act, 2013 is section 22 of No.

amended in subsection (4) by adding the following 35 of 20 13.

proviso Provided that No.

29 of 20 15.

(a) the Tax Procedures Act, 2015 shall apply with regard to imposition of interest and penalties; and (b) in cases where interest becomes payable it shall not, in aggregate, exceed the pri ncipal tax.

Repeal of section 28.

The Value Added Tax Act, 2013 is amended by 30 of No.

35 of repealing section 30.

20 13.

Amendment of 29.

Section 34 of the Value Added Tax Act, 2013 is section 34 of No.

35 of 20 13.

amended in subsection (1) by adding the following proviso Provided that this section shall not apply to persons supplying imported digital services over the internet or an electronic network or through a digital marketplace in respect to a turnover threshold of five million shillings.

Amendment of 30.

The First Schedule to the Value Added Tax Act, First Schedule to 2013 is amended - No.

35 of 20 13.

267 Finance 2022 No.

22 (a) in Section A of Part I (i) by deleting paragraph 26; (ii) by deleting paragraph 63: Provided that notwithstanding this subparagraph, any approval granted by the Cabinet Secretary before the commencement thereof in respect of the supply of taxable goods and which is in f orce at such commencement shall continue to apply until the supply of the exempted taxable goods is made in full, (iii) by inserting the following new paragraph immediately after paragraph 66- 66 A .Bioethanol vapour (BEV) Stoves classified under HS Code 7321.11.00 (cooking appliances and plate warmers for liquid fuel) (iv) inserting the words and pellets immediately after the word briquettes appearing in paragraph 137; and (v) by inserting the following new paragraphs immediately after paragraph 139 140.

Plant and machinery of chapter 84 and 85 imported by manufacturers of pharmaceutical products or i nvestors int he manufacture of pharmaceutical products upon the recommendation of t he C abinet Secretary responsible for matters relating health.

141.

Medical oxygen supplied to registered hospitals.

142.

Urine bags, adult diapers, artificial breasts, colostomy or il eostomy bags for medical use.

143.

Inputs and raw materials used in the manufacture of passenger motor vehicles.

268 F inance 2022 No.

22 144.

Locally Manufactured passenger motor vehicles: Provided that in this paragraph- locally manufactured passenger motor vehicle means a motor vehicle for the transportation of passengers which is manufactured in Kenya and whose ex-factory value comprises at l east thirty percent of local content; and local content means parts designed and manufactured in Kenya by an original equipment manufacturer operating in Kenya.

145.

Taxable goods, inputs and raw materials i mported or locally purchased by a company which is- (a) engaged in business under a special operating framework arrangement with the Govern ment; and (b) incoiporated for purposes oi undertaking the manufacture of human vaccines; and whose investment is at least ten billion shillings, subject to approval of the Cabinet Secretary for the National Treasury, on reconunendation of the Cabinet Secretary for health.

146.

Such capital goods the exemption of which the Cabinet Secretary may determine to promote investment in the manufacturing sector: Provided that the value of such investment is not less than two billion shillings, (b) in Part II by deleting paragraph 32; (c) in Part II by inserting the following new paragraph immediately aft er paragraph 33 269 2022 F inance No.

22 34.

Taxable goods, inputs and raw materi als import ed or locally purchased by a company which- (a) is engaged in business under a special operating framework arrangement with the Government; and (b) is incorporated for purposes of undert aking the manufacture of human vaccines; and whose capital investment is at least ten billion shillings, subject to approval of the Cabinet Secretary for the National Treasury, on recommendation of the Cabinet Secretary f or health.

Amendment of 31.

The Second Schedule to the Value Added Tax Act, the Second 2013 is amended Schedule to No.

35 of 20 13.

(a) in Part A by insert ing the following paragraph immediately aft er paragraph 22- 23.

The exportation of taxable services in respect of business process outsourcing.

24.

Fert ilizers of chapter 31.

25.

Inputs or raw materi als locally purchased or import ed by manufacturers of fert ilizer as approved from time to time by the Cabinet Secretary responsible for Agri culture, (b) in Part B, by deleting paragraph 9.

PART V- EXCISE DUTY Amendment of 32.

Section 10 of the Excise Duty Act, 2015 is section 10 of No.

amended by insert ing the following proviso to subsection 23 of 20 15.

Provided that the Commissioner may, by notice in the Gazette and with the approval of the Cabinet Secretary, exempt specified products from inflation adj ustment after consideri ng the circumstances prevailing in the economy in that year in respect of such products.

Amendment of 33.

Section 11 of the Excise Duty Act, 2015 is section 11 of No.

than amended in paragraph (a) by deleting the words other 23 of 20 15.

to a purchaser.

270 2022 F inance No.

22 Amendment of 34.

Section 36 of the Excise Duty Act, 2015 is section 36 of No.

23 of 20 15.

amended in subsection (4) by adding the following proviso Provided that No.

29 of 20 15.

(a) the Tax Procedures Act, 2015 shall apply with regard to imposition of interest and penalties; and (b) in cases where interest becomes payable it shall not, in aggregate, exceed the principal tax.

Amendment of is 35.

The First Schedule to the Excise Duty Act, 2015 the First Schedule amended to No.

23 of 20 15.

(a) in paragraph 1 of Part I, by deleting the following descriptions and corresponding rates of duty appearing in the second table (i) electronic cigarettes; (ii) cartridges for use in electronic cigarettes; (b) in the second table appearing in paragraph 1 of Part l - (i) by deleting the expression Shs.

12.17 per litre in respect of the tariff description Fruit juices (including grape must), and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter and substituting therefor the expression Shs.

13.30 per litre; (ii) by deleting the expression 10% in respect of the tariff description Cosmetics and Beauty products of tariff heading No.

3303, 3304, 3305 and 3307 and substituting therefor the expression 15%; (iii) by deleting the expression Shs.

121.85 per litre in respect of the tariff description Beer, cider, perry, mead, opaque beer and mixtures of fermented beverages with non alcoholic beverages and spirituous beverages of alcoholic strength not exceeding 6% and substituting therefor the expression KSh.

134 per litre; 271 2022 F inance No.

22 (iv) by deleting the expression shs.

208.20 per litre in respect of the tariff description Wines including fortified wines, and other alcoholic obtained beverages by fermentation of fruits and substituting therefor the expression Shs.

229 per litre; (v) by deleting the expression shs.

278.70 per litre in respect of the tariff description Spirits of undenatured ethyl alcohol; spirits l iqueurs and other spirituous beverages of alcoholic strength exceeding 596% and substituting therefor the expression Shs.

335.30 per litre; (vi) by deleting the expression Shs.

13,906.04 per kg in respect of the tariff description Cigars, cheroots, cigarillos, containing tobacco or tobacco substitutes and substituting therefor the expression Shs.

15,296.6 per kg; (vii) by deleting the expression Shs.

3,447.61 per mille in respect of the tariff description Cigarette with filters (hinge lid and soft cap) and substituting therefor the expression Shs.

3,825.99 per mille; (viii) by deleting the expression Shs.

2,502.74 per mille in respect of the tariff description Cigarettes without f ilters (plain cigarettes) and substituting therefor the expression Shs.

2,752.97 per mille ; (ix) by deleting the expression Shs.

9,734.45 per kg in respect of the tariff description Other manufactured tobacco and manufactured tobacco substitutes; a and reconstituted homogenous 55 tobacco; tobacco extracts and essences and substituting therefor the expression ii, Shs.

10,707.88 per kg; (x) by deleting the expression shs.

36.74 per kg in respect of the tariff description Imported sugar confectionary of tariff heading 17.04 and substituting therefor the expression Shs.

40.37 per kg; 272 2022 F inance No.

22 (xi) by deleting the tariff description White chocolate, chocolate in blocs, slabs or bars of tariff Nos.

1806.31.00, 1806.32.00, 1806.90.00 and the corresponding rate of excise duty and substituting therefor the following new tariff description and corresponding rate of excise duty Tariff Description Description K sh.

242 .29 Imported White chocolate including per kg chocolate in blocks, slabs or bars of tariff nos.

1806.31.00, 1806.32.00, and 1806.90.00 (xii) by deleting the expression 10% in respect of the tariff description Jewellery of tariff heading 7113 and imported jewellery of tariff heading 7117 and substituting the expression 15% ; (xiii) by deleting the tariff description Products containing nicotine or nicotine substitutes i ntended for inhalation without combustion or oral application but excluding medicinal products approved by the Cabinet Secretary responsible for matters relating to health and other manufactured tobaceo and manufactured tobacco substitutes that have been homogenized and reconstituted tobacco, tobacco extracts and essences and the corresponding rate of excise duty and substituting therefor the following new tariff description and corresponding rate of excise duty Tariff Description description Products containing nicotine or Ksh.

1,500 nicotine substitutes i ntended f or i nhalation w ithout combustion or oral application but excluding medicinal products approved by the Cabinet Secretary responsible f or matters relating to health and other and manufactured tobacco manufactured tobacco substitutes that have been homogenized and reconstituted tobacco, tobacco extracts and essences 273 2022 Finance No.

22 (xiv) by inserting the expression and 3923.90.90 immediately after the expression 3923.30.00 appearing in the tariff description Imported Articles of plastic of tariff heading 3923.30.00; (xv) by inserting the expression and imported potatoes of tariff numbers 0710.10.00, 2004.10.00 and 2005.20.00 immediately after the expression 07.01 appearing in the tariff description Imported potatoes, potato crisps and potato chips of tariff heading 07.01.

and (xvi) by deleting the following tariff description the corresponding rates- Rate of Excise Tariff description Duty 25% Imported furniture of any kind used in offices, kitchen, bedroom and other furniture and (xvii) by deleting the following tariff descriptions the corresponding rates and substituting therefor the following- Commodity code Raw Materials Excise duty 3907.91.00 10% Imported Unsaturated polyster 3907.50.00 10% Imported Alkyd 3905.91.00 10% Imported Emulsion VAM 3903.20.00 10% Imported Emulsion - styrene Acrylic 3905.19.00 10% Imported Homopolymers 3906.90.00 10% Imported Emulsion B.A .M of (c) by inserting the following new items at the end the second table appearing in paragraph 1 of Part I - i 274 2022 Finance No.

22 Rate of Excise Duty Description 40% Electronic cigarettes and other nicotine delivery devices Ksh.

70 per millilitre Liquid nicotine for electronic cigarettes Shs.

50 per SIM card Imported ready to use SIM cards (d) in Part II (i) by inserting the following proviso in paragraph 4A - Provided that this paragraph shall not apply to horse racing, (ii) by inserting the following new paragraphs immediately after paragraph 5- 6.

Excise duty on fees charged by digital lenders at a rate of twenty percent.

7.

Excise duty on importation of cellular phones, shall be at ten per cent of the excisable value.

Amendment of the 36.

The Second Schedule to the Excise Duty Act, Second Schedule to No, 23 of 20 15.

2015 is amended in Part A by adding the following new paragraphs immediately after paragraph 14 15.

Neutral spirit imported or purchased locally by registered pharmaceutical manufacturers upon approval by the Commissioner.

16.

Locally manufactured passenger motor vehicles: Provided that in this paragraph, locally manufactured passenger motor vehicle means a motor vehicle for t he transportation of passengers which is manufactured in Kenya and whose ex-factory value comprises at least thirty percent of local content; local content means parts designed and manufactured in Kenya by an original equipment manufacturer operating in Kenya.

275 2022 F inance No.

22 PART VI - TAX PROCEDURES of 37.

Section 9 of the Tax Procedures Act, 2015 jg Amendment 0^2015^*^^'^ amended in paragraph (b)(iii) by inserting the words whether the entity is carrying out business or not immediately after the words the trust.

of 38.

Section 31 of the Tax Procedures Act, 2015 jg Amendment amended by inserting the following proviso to subsection 29^of2o^i5'^'^ (4) - Provided that in the case of value added tax, the input tax shall be allowable for a deduction within six months or after the end of the tax period in which the supply importation occurred.

and 39.

The Tax Procedures Act, 2015 is amended by repealing section 40 and replacing it with the following sectfon40ofNo.

new section 29 of 2015.

Security on propeny 40.

(1) Where a taxpayer, being the for unpaid tax.

owner of property in Kenya, fails to pay a tax by the due date, the Commissioner may notify the Registrar in writing that the property, to the extent of the taxpayers interest in the property, shall be the subject of a security for the unpaid tax specified in the notification: Provided that the Commissioner shall, within seven days from the date of the notifi cation to the Registrar, by notice in writing inform the taxpayer and any other person who may have an interest in the property about the notifi cation.

(2) Where the Registrar has been notifi ed by the Commissioner under subsection (1), the Registrar shall, without levying or charging a fee, register the Commissioners notification as if it w ere an instrument of restraint on the disposal, mortgage on, or charge, as the case may be, the property specified in the notification.

(3) A registration under subsection (2) shall, subject to any prior restraint on disposal, mortgage or charge, operate as a legal restraint on the disposal, mortgage, or 276 2022 Finance No.

22 charge on, the property to secure the amount of the unpaid tax, and any prior restraint shall supersede the Commissioners notification.

(4) The Commissioner shall, upon the payment of the whole of the amount of unpaid tax secured under this section, direct the Registrar in writing to cancel the notifi cation made under subsection (2), and the Registrar shall, without levying or charging a fee, record the cancellation of the notifi cation and the notifi cation shall cease to apply.

(5) Where the taxpayer fails to pay the tax liability described in the notification under subsection (1) within two months after receipt of the notifi cation, the Commissioner or authorised offi cer may, at the cost of the taxpayer, dispose of the property that is the subject of the restraint on disposal, mortgage or charge, by public auction or private treaty, or as provided for under the relevant Act for the recovery of the tax : Provided that where a plan has been agreed between the taxpayer and the Commissioner, the liability shall be settled within the agreed payment plan before the notifi cation by the Commissioner is lifted.

(6) Subject to section 34, where the property is subject to a prior restraint, that prior restraint shall have priority if the property is disposed of under subsection (5).

(7) For the purpose of this section property means land or building, aircraft, ship, motor vehicle, or any other property which the Commissioner may deem suffi cient to serve as security for unpaid taxes; 277 2022 Finance No.

22 Registrar includes (a) the Land Registrar defined in section 3 of this A ct; (b) the Registrar of Ships appointed No.5 of 2006.

under section 14 of the Kenya Maritime Authority Act, 2006; (c) the Director-General of the Kenya No.

21 of 20 13.

Civil Aviation Authority appointed under section 19 of t he Civil Aviation Act, 2013; (d) the Director-General of the No.

33 of 20 12.

National Transport and Safety Authority appointed under section 15 of the National Transport and Safety Authority Act, 2012; or (e) any other person who the Commissioner is satisfied has authority to hold property sufficient to serve as security f or unpaid taxes; No.

5 of 2006.

relevant Act i ncludes the Kenya No.

4 of 2009.

Maritime Authority Act, 2006, Merchant No.

3 of 20 12.

No.

6 of 20 12.

Shipping Act, 2009, Civil Aviation Act, No.

33 of 20 12.

2013, Land Registration Act, 2012, Land No.

21 of 20 13.

Act 2012, National Transport and Safety Act, 2012, or any other Act that provides for the registration of property.

Am endment of 40.

T he T ax Procedures A ct, 20 15 is amended in section 42 of No.

29 of 20 15.

section 42 by (a) deleting the word seven appearing in subsection (6) and substituting therefore the words fourteen ; (b) deleting subsection (9) and substituting therefor the following new subsection (9) The Commissioner shall serve the taxpayer with a copy of a notice under this subsection (2), when serving the agent.

278 Finance 2022 No.

22 (c) inserting the following new subsection immediately after subsection 13- (14) No notice shall be issued under this section unless the Commissioner has either confirmed its assessment through an Objection Decision and the taxpayer has defaulted to appeal to the Tax Appeals Tribunal within the prescribed timelines.

of 41.

The Tax Procedures Act, 2015 is amended in Amendment Section 42 A (1) section 42A (1) by inserting the words and registered of No.

29 of 20 15.

manufacturers whose value of investment in the preceding l east three years from the commencement of this Act is at three billion at the end of the proviso.

and 42.

The Tax Procedures Act, 2015, is amended by M?tion47ofNo.

repealing section 47 and replacing it with the following new section 29 of 2015.

Offset or refund of 47.

(1) Where a taxpayer has overpaid overpaid tax.

a tax under any tax law, the taxpayer may apply to the Commissioner, in the prescribed f orm (a) to offset the overpaid tax against the taxpayer's future tax liabilities; or (b) for a refund of the overpaid tax within five years, or six months in the case of value added tax, after the date on which the tax was overpaid.

(2) The Commissioner shall ascertain and determine an application under subsection (1) within ninety days and where the Commissioner ascertains that there was an overpayment of tax (a) in the case of an application under subsection ( l )(a), apply the overpaid tax to such future tax liability; and (b) in the case of an application under subsection ( l )(b), refund the overpaid tax within a period of two 279 2022 Finance No.

22 years f rom the date of the application.

(3) Where the Commissioner fails to ascertain and determine an application under subsection (1) within ninety days, the same shall be deemed ascertained and approved.

(4) The Commissioner may, for purposes of ascertaining the validity of an application under subsection (1), subject the application to an audit.

(5) Where the application is for a refund of tax under subsection (l)(b), the Commissioner shall apply the overpayment in the following order (a) in payment of any other tax owing by the taxpayer under the specific tax law; (b) in payment of a tax owing by the taxpayer under any other tax law; and (c) any remainder shall be refunded to the taxpayer.

(6) Where the Commissioner fails to refund the overpaid tax within the period specified in subsection (2)(b), the amount due shall attract interest of one per cent for each month or part thereof during which the amount remains unpaid.

(7) Where the Commissioner notifies a taxpayer that an application under subsection (l )(a) has been ascertained and applies the overpaid tax liability to offset an outstanding tax in accordance with subsection (2)(a), interest or penalties shall not accrue on the amount applied to offsetting the outstanding tax liability from the date of the notification.

280 Finance 2022 No.

22 (8) Where the Commissioner has applied the overpaid tax to offset an outstanding tax liability under subsection (2)(a), any outstanding tax after such application shall accrue interest and penalties in accordance with this Act.

(9) Notwithstanding any other provision of this section, where a person ove^ ays an instalment tax due under Cap.

470.

section 12 of the Income Tax Act, the Commissioner shall apply the overpaid tax to offset the taxpayers future instalment tax liability.

(10) Where, after the application of the overpaid tax under subsection (9), the Commissioner later determines that there was no overpayment of instalment tax, the amount of the tax that was used to offset the taxpayers future instalment tax liabilities under subsection (9) shall be treated as a tax due to the Commissioner in the subsequent tax period.

( 11) The amount due under subsection ( 10) shall be due from the date that the Commissioner applied that amount to offset an instalment tax liability.

(12) The Commissioner shall notify the taxpayer in writing of the amount due under subsection ( 10) and specify in the notif ication (a) the interest on the amount due; and (b) any penalties due in respect of the amount due.

(13) A person aggrieved by a decision of the Commissioner under this section may appeal to the Tribunal within thirty days after being notified of the decision.

I nsertion of new 43.

The Tax Procedures Act, 2015 is amended by sections 47A and inserting the following new sections immediately after 47B in No.

29 of 20 15.

section 47 281 2022 Finance No.

22 Refund of tax paid in 47A.

(1) Where tax has been paid in error.

error, the Commissioner shall, except as otherwise provided in this Act or the relevant sdtax law, refund such tax.

(2) In processing a refund under subsection (1), the provisions of section 47(1), (2), (3), (4) and (5) shall apply, with the necessary modifications.

(3) For the puiposes of this section, tax paid in error means any tax paid which the Commissioner is satisfied ought not to have been paid.

Refund of tax paid on 47B.

The Commissioner may, upon exempted or zero rated supply.

approval by the Cabinet Secretary, refund a tax paid in error in any case where the supply is exempt or zero-rated under the Act but such exemption or the zero rating was not processed within the specified period due to circumstances beyond the control of the taxpayer.

of 44.

Section 51 of the Tax Procedures Act, 2015 is Amendment section 51 of No.

amended 29 of 2015.

(a) in subsection (4), by deleting the word immediately and substituting therefor the words within a period of fourteen days; (b) by deleting the introductory words of subsection (7) and substituting therefor the words The Commissioner shall consider and may allow an application under subsection (6) if ; (c) by i nserting the following new subsection immediately after subsection (7) (7A) The Commissioner shall notify the taxpayer of the decision made under subsection (7) within fourteen days after receipt of the application, (d) by deleting subsection (11) and substituting therefor the following new subsections ( ll ) T he Commissioner shall make the objection decision within sixty days from the date 282 F inance No.

22 2022 of receipt of a valid notice of objection failure to which the objection shall be deemed to be allowed.

(12) A person who is dissatisfied with the decision of the Commissioner under subsection (11) may appeal to the Tribunal within thirty days after being notified of the decision.

Amendment of the 45.

The First Schedule to the Tax Procedures Act, First Schedule to 2015 is amended by adding the following paragraph No.

29 of 20 15.

immediately after paragraph (14) (15) Registration of a trust.

Amendment of 46.

Section 7 of the Miscellaneous Fees and Levies Act, 2016, is amended in subsection (2A) i?.

(a) by deleting paragraph (b) and substituting therefor the following new paragraph (b) raw materials and intermediate products imported by manufacturers upon recommendation to the Commissioner by the Cabinet Secretary responsible for matters relating to industry, (b) by deleting paragraph (c) and substituting therefor the following new paragraph (c) i nput for the construction of houses under an affordable housing scheme upon recommendation to the Commissioner by the Cabinet Secretary responsible for matters relating to housing.

Amendment of 47.

Section 8 of the Miscellaneous Fees and Levies Act, 2016, is amended in subsection 2A 29^of mie! (a) by deleting paragraph (a) and substituting therefor the following new paragraph (a) raw materials and intermediate products imported by manufacturers upon recommendation to the Commissioner by the Cabinet Secretary responsible for matters relating to industry, (b) by deleting paragraph (b) and substituting therefor the following new paragraph 283 2022 Finance No.

22 (b) input for the construction of houses under an affordable housing scheme upon recommendation to the Commissioner by the Cabinet Secretary responsible for matters relating to housing.

Amendment of 48.

Section 9A of the M iscellaneous Fees and Levies section 9A of Act, 2016, is amended by adding the following proviso No.

29 of 20 16 Provided that this section shall not apply to currency notes and coins imported by the Central Bank of Kenya.

PART VII - M ISCELLANEOUS FEES AND LEVIES Amendment of 49.

Section 9B of the M iscellaneous Fees and Levies section 9 of No.

29 the Act, 2016 is amended in paragraph (b) by inserting of 20 16.

words and levies immediately after the word fees.

Amendment of the 50.

The First Schedule to the M iscellaneous Fees and Levies Act, 2016, is amended- Sr 2?oM?r6.

(a) in Part I by inserting the following new description and corresponding rate of export levy in the table in proper numerical order Tariff No.

Tariff Description Export levy rate 2601 I ron ores and USD 175 per tonne concentrates, including roasted iron pyrites (b) in paragraph (1) of Part III, by deleting the words the beginning of every financial year in accordance with this paragraph and substituting therefor the words at a date not later than the 1st October of every fi nancial year in accordance with the formula specifi ed in paragraph (2).

of 51.

The Second Schedule to the M iscellaneous Fees Amendment and Levies Act, 2016, is amended- Sel fdT to No.

29 of 20 16.

(a) in Part A, by inserting the following new items immediately ^ter item (xxv) (xxva) inputs and raw materials imported by manufacturers of pharmaceutical products on the recommendation of the Cabinet Secretary responsible for matters relating to health; 284 2022 F inance No.

22 (xxvb) goods imported for use in the construction and maintenance of human v accine manufacturing plants as approved by the Cabinet Secretary for the National Treasury on r ecom mendation of t he C abinet Secretary for Health; (xxvc) goods, inputs and raw materials imported by a company which is - (a) engaged in business under a special operating framework arrangement with the Government; and (b) incorporated f or purposes of undertaking the manufacture of human vaccines; and whose capital investment is at least ten billion shillings, subject to approval of the Cabinet Secretary for the National Treasury, on recommendation of the Cabinet Secretary f or health , (b) in Part B, by inserting the following new items immediately after item (viii) - (viiia) inputs and raw materials imported by manufacturers of pharmaceutical products on the recommendation of the Cabinet Secretary responsible for matters relating to health; (viiib) goods imported for use in the construction and m aintenance ofh um an v accine manufacturing plants as approved by the Cabinet Secretary for the National Treasury on r ecommendation of t he C abinet Secretary for Health, (viiic) goods, inputs and raw materials imported by a company which is (a) engaged in business under a special operating framework arrangement with the Government; and (b) i ncorporated f or purposes of undertaking the manufacture of human vaccines; and whose capital 285 2022 F inance No.

22 investment is at l east ten billion shillings, subject to approval of the Cabinet Secretary for the National Treasury, on recommendation of the C abinet Secretary for health.

PART VIII - M ISCEL L ANEOUS Amend of section 52.

Section 133 of the Evidence A ct is amended 133 of Cap.

80.

(a) in subsection (1), by deleting the words to income tax, customs or excise and substituting therefor the words the laws specified in the First Schedule No.

2 of 1995.

to the Kenya Revenue Authority Act, 1995; (b) by deleting subsection (2) and substituting therefor the following new subsection (2) For the purposes of this section, revenue officer means any officer employed in or about the business of any public office for the collection of public revenue.

Amendment of in 53.

Section 2 of the Capital Markets Act is amended section 2 of Cap.

the definition of investment advisor by deleting paragraph 485A.

(3).

Amendment of 54.

Section 29 of the Capital Markets Act is amended in subsection (1) - 29 of cap.

(a) by deleting the words a company incoiporated under the Companies Act with such minimum share capital appearing in paragraph (a) and as substituting therefor the words such legal entity may be prescribed in the Regulations; (b) by deleting the words director and at least one employee who is the chief executive of the applicant company, have appearing in paragraph (c) and substituting therefor the words the director, chief executive officer or such other person who directs, conducts, manages or supervises the business of the applicant has.

Amendment of 55.

Section 10 of the Insurance A ct is amended section 10 of Cap.

487.

(a) in subsection (4), by deleting the expression section 21" and substituting therefor the expression section 21 A ; 286 F inance 2022 No.

22 (b) in subsection (8), by deleting the expression section 21 and substituting therefor the expression section 21 A.

A mendment of 56.

Section 2 of the Kenya Roads Board Act, 1999 is the section 2 of amended in the definition of Fund by deleting the No.

7 of 1999.

expression section 30 and substituting therefor the expression section 31.

Amendment of 57.

Section 6 of the Kenya Roads Board Act, 1999 is amended in subsection (2) the (a) by deleting paragraph (c) and replacing it with following new paragraph (c) manage the fund and allocate monies from the Fund in the following manner (i) fi fty per cent of the Fund shall be allocated in accordance with paragraph (d); and (ii) f ifty per cent of the Fund shall be allocated for the purposes of section 32A (2).

(b) by deleting the words from the fuel levy appearing in the opening words of paragraph (d); (c) in paragraph (d) (i), by deleting the words monies from the fuel levy and substituting therefor the words allocated funds; mon ie s (d) in paragraph (d) (ii), by deleting the words from the Fund and substituting therefor the words allocated funds ; (e) in paragraph (d) (iii), by deleting the words monies from the fuel levy and substituting therefor the words allocated funds; (f) in paragraph (d) (iv), by deleting the words monies from the fuel levy and substituting therefor the words allocated funds; (g) in paragraph (d) (v), by deleting the words monies from the fuel levy and substituting therefor the words allocated funds; and (h) in paragraph (d) (vi), by deleting the words monies from the Fund and substituting therefor the w ords allocated funds.

A mendment of 58.

Section 29A of the Betting, Lotteries and Gaming section 29A of Act is amended by adding the following new subsection Cap.

131 (3) This section shall not apply to horse racing.

Am endment of 59.

Section 3(2) of the Road Maintenance Levy Fund section 3 of the Act, 1993 is amended by inserting the words to fund 287 2022 Finance No.

22 No .9 of 1993 construction of roads under the Road Annuity Programme 99 and similar roads approved by the National Assembly immediately after the words Public Finance Management Act, 2012 Amendment of 60.

Section 33 of the Unclaimed Financial Assets Act, Section 33 of No.

40 of 20 11.

2011 is amended by deleting subsection (6) and substituting therefor the following new subsection and (6) The penalties payable under subsections (1), (4) (5) of this section shall (a) be recoverable as civil debts summarily; and (b) in total , not exceed the value of the assets found to be reportable and deliverable.

I nsertion of a new 61.

The Unclaimed Financial Assets Act, 2011 is sections in No.

40 amended by inserting the following new sections of 20 11.

immediately after section 33 Waiver of penalties, 33A.

The Authority may, with the f ines and audit fees.

approval of the Cabinet Secretary waive payment of any of the penalties and fines under section 33, whether in part or in full, where (a) the waiver is intended to facilitate the holder of the asset to disclose and deliver the undeclared asset to the Authority; (b) in the opinion of the Authority, there is j ustifiable reasons to do so; or (c) it is in the public interest to do so.

Voluntary Unclaimed 33B.

(1) There is established a Financial A ssets D isclosure programme to be known as the Voluntary Programme.

Unclaimed Financial A ssets Di sclosure Programme which shall be for a period of twelve months f rom t he date of the commencement of this section.

(2) The object and purpose of the programme established by subsection (1) shall be to grant relief of the penalties and interest in unclaimed assets where the holder discloses, reports or delivers the assets to the Authority in accordance with this section.

288 Finance 2022 No.

22 (3) A holder of unclaimed assets may disclose, report and deliver the assets to the Authority for the purpose of being granted relief on penalties and interest on such assets.

(4) This section shall apply to assets held up to the thirtieth day of June 2022.

(5) A holder who discloses, reports and delivers the unclaimed financial assets w ithin twelve months fr om t he date of commencement of this section shall not be liable to the penalties or interest payable under sections 33(1), (4) and (5).

Amendment of in 62.

The Statutory Instruments Act, 2013 is amended section 15 of No.

section 15 by i nserting the f ollowing subsection 23 of 20 13.

immediately after subsection (3) (4) Without prejudice to the provisions of section 12 and this section, any statutory instrument which contains provisions dealing with taxes, levies or fees, or has the effect of imposition of a charge on a public fund or variation or repeal of such charge, the National Assembly shall, within twenty-eight sitting days from the date of receipt of the notice under section 11, consider the notice and make a resolution either to approve or rej ect the notice.

Amendment of 63.

Section 21 of the Statutory Instruments Act, 2013 23''of20i3 is amended by inserting the following new subsection immediately after subsection (3) (4) The automatic revocation period for Cap.

470.

statutory instruments issued under the Income Tax Cap.

480.

No.

35 of 20 13.

Act, the Stamp Duty Act, the Value Added Tax No.

40 of 20 13.

Act, 2013, Tax Appeal Tribunal Act, 2013 Excise No.

23 of 20 15.

of 20 15.

Duty Act, 2015 and Tax Procedure Act, 2013 is No.

29 hereby extended for a period of twenty-four months with effect from the twenty fifth day of January, 2023.

Amendment of 64.

Section 13 of the Retirement Benefits (Deputy section 13 of No.8is President and Designated State Officers) Act, 2015 of 20 15.

amended I 289 2022 Finance No.

22 (a) by deleting subsection (1) and substituting therefor the following new subsection (1) The benefits granted to an entitled person, or his or her surviving spouse, as the case may be, under this Act, shall be administered (a) in the case of a retired Deputy President, retired Prime Minister or retired Vice- President, by the Office of the President, and shall be provided for in the estimates of the national government referred to in Article 221(1) of the Constitution; (b) in the case of a retired Speaker of the National Assembly or the Senate, by the Parliamentary Service Commission, and shall be provided for in the estimates of the parliamentary service prepared pursuant to Article 127(6)(c) of the Constitution; and (c) in the case of a retired Chief Justice or retired Deputy Chief Justice, by the Judicial Service Commission, and shall be provided for in the estimates of the Judiciary prepared pursuant to Article 173(3) of the Constitution, (b) by inserting the following new subsections immediately after subsection (1) (lA) For purposes of this section, benefits means the benefits granted to an entitled person under the First Schedule, Second Schedule or the Third Schedule to this Act.

(IB) For the avoidance of doubt, subsection sum (1) shall not apply to the pension, lump payment upon retirement, and gratuity provided for in this A ct.

(1C) The respective entities under subsection (1), shall formulate administrative guidelines for on the administration of this section including matters relating to the computation of benefits due to an entitled person under this section.

.