Confusion reigns in stock market over Capital Gains Tax

In January trading, most investors shied away from trading at the NSE for fear of being hit by the tax [photo:BEVERLYNE MUSIKLI/standard]

The Kenya Revenue Authority (KRA) appears to have retreated from its earlier directive requiring stockbrokers to remit capital gains tax each time an investor disposes their shares at the Nairobi Securities Exchange (NSE).

In a notice appearing in the dailies on Friday, KRA has now confined the burden of paying Capital Gains Tax (CGT) to those dealing in transfer of land or buildings. “Taxpayers should note that it is mandatory to pay capital gains tax and stamp duty before transfer of land or building,” said the notice in part.