LEGAL ALERT: Payment of Stamp Duty and Capital Gains Tax
Further to our recent highlight on The Business Laws Amendment Act 2020which is aimed at enhancing the ease of doing business in the country, we write to inform you that the Government of Kenya has announced further reforms aimed at simplifying the payment of stamp duty.
The Kenya Revenue Authority (KRA) through a Public Notice dated 24th March 2020 has informed the public that they are in the process of simplifying stamp duty payment on the iTax system. To this end, it will no longer be conditional to present a Capital Gains Acknowledgment slip before stamp duty payment can be processed.
However, note that transfer of property still attracts Capital Gains Tax which is payable on or before the 20th day of the following month in which the transfer of property is carried out.
This move by the KRA is laudable as it will create efficiency and expedite the process of payment of stamp duty. The move is also in compliance with the orders of the High Court to the effect that Capital Gains Tax is only payable upon transfer of property and not before.