MH Reporter
The Treasury as today Thursday shared the the Finance Bill 2023. The bill which is expected to pass in Parliament details a wide range of issues.
Here are the key issues you need to know.
- Digital content creators (influencers) will now be subject to a 15% withholding tax on payments related to digital content monetization as per the 3rd Schedule of the Income Tax.
- VAT on exported services has been revised; Business Process Outsourcing services are now zero-rated, other services rendered exempt.
- Per diems for public and private servants will now be fully taxable as gains from employment.
- Ads related to betting, lotteries, or alcohol on print, TV, billboard, and radio to be subject to a 15% excise duty.
- Digital Assets Tax has been introduced, targeting those who own platforms or facilitate the exchange or transfer of digital assets, including cryptocurrencies, token codes, non-fungible tokens, and other similar tokens.
- Individuals earning KES 500,000 or more per month will have their PAYE graduated to 35%.
- The National Treasury proposes to revise the turnover tax from 1% to 3% and change the band eligible for turnover tax from KES 1M – 50M to KES 500,000 – KES 15M.
- A 3% deduction of an individual’s basic salary will be directed towards the National Housing Development Fund, matched by a 3% contribution from the employer.
- The National Treasury proposes to do away with the annual inflation adjustment of excise tax.
- Treasury is proposing to have the requirement that betting firms remit excise taxes to KRA within 24 hours be anchored in law.
- Treasury proposing empowering KRA to require tax payers IN ANY SECTOR to remit excise duty collected on certain excisable services within 24 hours.
- A 5% excise duty will be levied on wigs, false beards, eyebrows, eyelashes, artificial nails, and human hair.
- Imported cell phones will attract a 10% excise duty.
- LPG gas and fertilizer exempted from VAT.