KRA Archives - Page 2 of 2 - Intelpoint Consulting

What are the Implications of the Finance Act 2025 on Tax Loss Carry-Forwards?

Kenya Revenue Authority recently issued a pivotal private ruling that clarifies the transitional application of the newly introduced five-year limitation on tax loss carry-forwards. Contrary to a logical interpretation of the new law, KRA has taken a stringent position: all tax losses incurred prior to the year of income 2020 have effectively expired and are no […]

Are Financial Service Providers Exempt from VAT?

Pesapal Limited v Commissioner of Domestic Taxes [2025] KEHC 12284 (KLR) Background KRA issued a VAT assessment against Pesapal for commissions earned from merchants, comprising a principal tax of Kshs. 76,836,162 and penalties/interest of Kshs. 33,982,992. Pesapal objected the VAT assessment, arguing its services were VAT-exempt financial services. The Tax Appeals Tribunal dismissed Pesapal’s appeal. […]

How Taxable Are Your Bank Deposits?

Kirin Pipes Limited v Commissioner of Intelligence & Enforcement [2025] KETAT 259 (KLR) Background The dispute arose from a tax investigation conducted by KRA into the affairs of Kirin Pipes Limited for the years 2019 to 2022. KRA identified a variance between the total deposits in the Kirin’s bank accounts and the turnover declared in […]

The Finance Act 2025

Finance Act 2025

Timing of Capital Gains Tax in Kenya

Introduction Capital Gains Tax (CGT) is a critical consideration when transferring ownership of assets such as property, stocks, or investments. In Kenya, CGT is levied at 15% on the profit (capital gain) earned from the transfer of an asset. This rate increased from 5% on 1st January 2023. Many taxpayers find themselves in disputes with the Kenya Revenue […]

Adjustments when Computing Capital Gains Tax

Introduction Capital Gains Tax (CGT) is a critical consideration when transferring ownership of assets such as property, stocks, or investments. In Kenya, CGT is levied at 15% on the profit (capital gain) earned from the disposal of an asset. Understanding how to accurately compute this tax ensures compliance and avoids disputes with the Kenya Revenue […]

Contract of Service Vs Contract for Service

The Kenyan law clearly distinguishes between an employee (contract of service) and an independent contractor (contract for service). Section 2 of the Income Tax Act, a “contract of service” implies an employer-employee relationship, while a “contract for service” denotes an independent contractor arrangement. A contract of service is one that creates rights and responsibilities between parties […]

How KRA’s Delay Cost Them the Case – A Taxpayer’s Win!

Section 51(11) of the Tax Procedures Act (TPA) imposes mandatory timelines (60 days) for the Commissioner to issue an objection decision. These timelines are not procedural formalities but critical safeguards to ensure taxpayer rights and business certainty. Delays undermine commerce, as taxpayers cannot plan effectively without timely resolutions. Case study: Panari Centre Limited v Commissioner of Legal Services & […]