By Etaarifa Contributor
In the recently amended Finance Act 2015, the Capital Gain Tax has exempted listed securities’ transactions from payment.
The Capital Gains Tax was re-introduced in January 2015 but its implementation encountered challenges including: assessment, computation, collection and remittance to the Kenya Revenue Authority; leading to a stalemate between the taxman and stock brokers.
The Finance Act also amended the Income Tax Act to allow a company introducing shares through listing by introduction on any securities exchange to pay corporate tax at the rate of 25 percent for a period of five years, commencing immediately after the year of income following the date of such listing.
Currently, there already exists a tax incentive for companies listing through an Initial Public Offering (IPO).
The Finance Act also amended the Stamp Duty Act by removing duty on transfer of real estate into a Real Estate Investment Trust (REIT) before December, 2022.
National Treasury Cabinet Secretary Henry Rotich also exempted documents executed in connection with Asset-Backed Securities (ABS) approved by the Capital Markets Authority (CMA) from payment of stamp to enhance growth in the uptake of ABS.