New battle looms between Kenya Revenue Authority and stockbrokers

NAIROBI: A new battle is brewing between Kenya Revenue Authority (KRA) and the stock brokerage fraternity. This follows a notice by the taxman that brokers continue remitting capital gains tax on sale of securities until a new levy introduced in this year's budget kicks in next year.

 

"The rate of capital gains tax chargeable on sale of listed securities as per the current law is 5 per cent of the net gain. This tax, which is collected and accounted for by stockbrokers on behalf of their clients, is due upon transfer of securities but not later than the 20th of the month following that in which the transfer was made," KRA said in a public notice issued yesterday. The revenue authority has also stated that stockbrokers will be responsible for remitting the newly introduced 0.3 per cent withholding tax when an investor sells shares at the Nairobi Securities Exchange (NSE).