THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA
(Established under the Accountants Act, Laws of Kenya)
Income Tax & Indirect Taxes Seminar (Mandatory Training) – Recording
Date: 12th – 13th April 2023
Time: 9.00am-3.30pm
Venue: Online
(This is one of the mandatory trainings for Practicing Certificate consideration)
Overview
The increased reliance on indirect taxes compared to the use of income taxes has played a key role in tax reforms put in place by many governments. All these efforts are aimed at widening the tax base as well as promoting tax compliance. Tax reforms that take place are aimed at aligning domestic tax regimes with international tax practice where possible.
While taking into consideration the changes in business models, the governments often make amendments to the existing tax legislations. The rapid growth in the digital economy has triggered many changes in the taxation regime globally.
The Finance Act, 2022 (the “Act”) was assented into law on 21st June 2022. The Act introduced material changes to the tax regime in Kenya and is largely aimed at enhancing revenue collection, promoting investments and bringing alignment to the current tax laws. Most of the changes took effect from 1st July 2022.
Under the Act, gains derived by non-residents from financial derivatives which are not traded at the Nairobi Securities Exchange will be subject to income tax at the rate of 15%. A Kenya resident who enters into a financial derivatives contract with a non-resident person is required to deduct this tax on the payments made to the non-resident. Prior to the Act, the exemption from the application of interest restriction rules (generally referred to as “thin capitalization rules”) only applied to banks or other institutions licensed under the Banking Act or Micro and Small Enterprises Act. The Act extends the exemption of the thin capitalization rules to other entities.
It is in line with the above key changes that this seminar has been lined up and it seeks to respond to and provide ways of tax planning on aspects of income taxes and indirect taxes through a detailed analysis of the existing legislations while leveraging on relevant case laws and studies. Specifically, the seminar will cover the following tax areas:
- Introduction to Income and indirect tax
- Introduction to income taxes and indirect taxes
- What is the difference between income and indirect tax
- Regressive or progressive?
- Success in the use of income taxes and indirect taxes in Kenya
- Overview of the Finance Act 2022
- VAT and emerging issues
- A brief history of VAT and VAT Act 2013 in Kenya and the related amendments through the Finance Act 2022
- How VAT works
- Pros and Cons of VAT
- Determination of VAT and compliance requirements
- Value Added Tax Automated Assessments (VAA)
- Customs and international trade
- Introduction to customs and EACCMA
- Custom documentation and procedure requirements (compliance requirements).
- Customs management in the wake of Africa Continental free trade area and other emerging issues
- Excise tax “sin tax” and emerging issues
- Introduction and history to excise tax – is excise tax a “sin tax”?
- Provisions of Excise Act
- Emerging issues on excise tax
- Corporate income tax and the current developments
- Introduction & history to income tax in Kenya
- Charge tax – forms of income subjected to corporate income tax
- Taxable income vs Gross income (turnover)
- Deductible and non deductible expenses
- Thin capitalization
- Digital service tax
- Personal and expatriate’s tax
- Introduction and history of personal taxes
- Taxation of cash and non-cash benefits
- Taxation of terminal dues
- Statutory deductions and tax planning
- Withholding tax developments
- Understanding withholding taxes and income tax Act
- Compliance requirement for withholding tax
- Withholding tax and Double tax agreements
- Pros and cons of withholding tax
Target Audience
This workshop will be useful to all professional Accountants and those aspiring to join the profession
Continuous Professional Development Units (CPD Units):
Members of ICPAK and reciprocating professional bodies will be awarded 10 CPD Units upon successfully attending the session.
Cost:
Charges for the training will be Kes 10,000/= which will cover workshop fees, materials, and e-certificates of attendance.
Online Booking:
We call on Seminar participants to note that booking for is available only online at www.icpak.com/events and will close two hours before the training session. Delegates are reminded to note that online booking for training sessions is mandatory. This is available either online at www.icpak.com/events or on the ICPAK Live – A smart phone-based application that is available from google store.
National Industrial Training Authority (NITA) Reimbursement:
The Institute is registered as a trainer with National Industrial Training Authority. The Institute’s registration number is DIT/TRN/47. Participants who are registered levy contributors should apply to NITA for reimbursement of their fees. Please note that this is applicable for Kenyan citizens only and subject to NITA regulations. Remember that to qualify you should apply to NITA for approval prior to the date of the conference. Further details can be obtained from their website (www.nita.go.ke)