Speaking during the American Chamber of Commerce business summit in Nairobi on Thursday 30th, President Ruto said the government is committed to creating a conducive environment for businesses to operate.
Furthermore, the head of state assured investors of a more predictable tax regime noting private sector players make long-term investments decisions in an environment with predictable policies, among them tax policies.
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The president announced a three-year cycle on changes in taxes, doing away with the traditional changes that have in the past come with the Finance Bill each financial year.
“This policy that will enhance transparency in our tax regime will take effect by June 2023 and will now be in place for a minimum of three years,” Ruto said.
The government will also review Digital Services Tax and align it with the two-pillar solution currently being developed by the Organization for Economic Cooperation and Development (OECD) inclusive framework.
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Value Added Tax on exported services will also be removed in the Finance Bill, in the coming budget, in June this year.
Also, effective June 2023, all verified tax refund claims will be payable within six months.
“If for whatever reason a refund is not made by the Kenya Revenue Authority within this period, the taxpayer can offset their claim against future tax liability, without further application to KRA,” Ruto said.
Both local and foreign investors have in the past decried an unpredictable tax regime in the country which has affected long term investment decisions.
The head of state said Kenya is open for business, noting the government is keen to ensure policies and institutional framework is designed to make the country the most competitive investment destination in the region.
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