Enterprises fear Kenya Revenue Authority penalties
SEE ALSO :Drop in banks’ profit denies State Sh69b“The fact that this is considered by KRA on a case-by-case basis, there is still uncertainty since companies fear opening their books without the assurance that they will be able to successfully negotiate,” said the policy proposal. CMA now wants the Government to provide for tax amnesty for companies that list on the GEMS board, provided that the entity makes full disclosure of its assets and liabilities, undertakes to pay all its future due taxes and remains listed for a period of five years. Incentives The proposed policy also asks for tax incentives to boost listing at the bourse’s main segment that has remained stagnant since Deacons listed in 2016. Companies seeking to list at the NSE would get a huge tax benefit after proposals were fronted to have them pay only 18 per cent in corporate taxes.
SEE ALSO :Court blocks destruction of Kwale sugarAccording to the CMA policy proposals to stimulate listing and market depth, companies that open up 40 per cent of their shareholding to the general public will only pay 18 per cent for five years.