MSI's Kenyan accounting member BC Patel & Co. provides a useful 2017 tax amnesty guideline in respect of foreign assets and income in Kenya.
The Finance Act 2016 introduced Section 37B in Tax Procedure Act and granted tax amnesty to Kenyan resident persons. This amnesty came into effect from 1 January 2017. Finance Act 2017 brought in certain changes to the original Amnesty and after long debate KRA published guidelines dated 10 July 2017 on the eligibility and application process.
It is our understanding that potentially the Government will obtain short term and long term benefits from this Amnesty. In the short term, the Government will receive immediate foreign exchange remittances from the taxpayers that participate in the tax amnesty program. In the long term, the Government will receive tax revenue from the additional economic activities related to the repatriated offshore funds.
We have been monitoring the discussion on the proposed tax amnesty law since last year. During that time, changes from one draft to another were quite significant. We note that at least two versions o the guideline have been circulated to the public. Therefore, to ascertain that taxpayers are referring to the correct text of the law, they should follow the Finance Act 2017 together with KRA guideline dated 10 July 2017.
Notwithstanding the above, we set out our views of the law based on the latest guideline issued by Kenya Revenue Authority.
B.C. Patel & Company is a professional firm incorporated in 1967. We are a fast growing audit firm offering professional financial and business advisory services from our strategic location in Nairobi – Kenya .