On 10 July, details were posted on the tax changes for Kenya effective 1 July 2023.
Click here to view the original post on Sage City.
The tax changes were suspended by the High Court of Kenya, however the Kenyan Court of Appeal has overturned judgments that had prevented the Finance Act from going into effect.
As a result, the Kenya Revenue Authority(KRA) has updated their iTax platform in line with the Act.
What is the way forward since payrolls have been completed for July?
- Sage has consulted with the KRA as July salaries were paid on the old tax rates, due to the suspension of the tax changes
- We are in the process of creating detailed steps how to apply the tax changes, and are testing the scenarios to ensure the employee tax as from July 2023, will be aligned to the new tax tables
- Tax tables are scheduled for deployment on Monday evening 7 August 2023
Take note: We strongly recommend to keep your Kenya tax country companies in July, in order to apply the tax changes correctly once the tax files are released.
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