@StandardMedia

Capital Market Authority proposes tax amnesty for Small and Medium Enterprises

1 weeks ago, 00:09

By: Otiato Guguyu

The Capital Markets Authority (CMA) is proposing a tax amnesty on SMEs that list in the Growth and Enterprise Market Segment (GEMS).

Many small businesses are apparently afraid that if they get listed and open up their books to the public, the Kenya Revenue Authority (KRA) will hunt them down for previous non-disclosure and slap them with hefty penalties.

“During our engagements through the SMEs accelerator and incubation programme, we learned that most SMEs fear KRA, so they wanted assurance that when they disclose their statements the taxman will not go for their past incomes,” said CMA Head of Strategy and Policy Jairus Muaka.

Currently, there is a waiver on penalties and interest associated with previous non-disclosures on a case by-case basis.

“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.

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.

According 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.


Read More


Category: business news

Suggested

5 hours ago, 08:04
@BusinessDaily - By: Lynet Igadwah
Small traders’ Sh12bn imports held at harbour set for auction

Multi-agency team on illicit goods says the consignment will be sold in next two weeks ...

Category: business news
13 hours ago, 00:00
@StandardMedia - By: Dominic Omondi
Rai firms tighten grip on local sugar industry

Report by Sugar Directorate looked at sector’s performance in first nine months of 2018. ...

Category: business news
1 day ago, 11:58
@StandardMedia - By: Valentine Kondo
Rwanda seeks to woo investors in bid to explore hydrocarbons

East African Nation, Rwanda is seeking to partner with oil and gas companies to explore Lake Kivu for hydrocarbons said a state official. ...

Category: business news
13 hours ago, 00:09
@StandardMedia - By: Standard Reporter
Stanbic, leasing firm to offer affordable laptops to students

Stanbic Bank has partnered with RentCo Leasing and Cool4School to launch a leasing scheme that will deliver affordable laptops to students. ...

Category: business news
13 hours ago, 00:17
@TheStar - By: Abel Muhatia @muh ...
Give tax breaks to regain exports market — KAM

Manufacturers now want a break from the import declaration fee of two per cent and the railway development levy of 1.5 per cent. Speaking during the unveiling of the sectors deep-dive report on Thursd ...

Category: topnews news business
1 day ago, 13:16
@StandardMedia - By: Reuters
Government to set up gold refinery to help small miners

Kenya has proven deposits of titanium, gold and coal but its mining sector is a relatively small contributor to national output. ...

Category: business news

@StandardMedia

Capital Market Authority proposes tax amnesty for Small and Medium Enterprises

1 weeks ago, 00:09

By: Otiato Guguyu

The Capital Markets Authority (CMA) is proposing a tax amnesty on SMEs that list in the Growth and Enterprise Market Segment (GEMS).

Many small businesses are apparently afraid that if they get listed and open up their books to the public, the Kenya Revenue Authority (KRA) will hunt them down for previous non-disclosure and slap them with hefty penalties.

“During our engagements through the SMEs accelerator and incubation programme, we learned that most SMEs fear KRA, so they wanted assurance that when they disclose their statements the taxman will not go for their past incomes,” said CMA Head of Strategy and Policy Jairus Muaka.

Currently, there is a waiver on penalties and interest associated with previous non-disclosures on a case by-case basis.

“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.

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.

According 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.


Read More

Category: business news

Suggested

5 hours ago, 08:04
@BusinessDaily - By: Lynet Igadwah
Small traders’ Sh12bn imports held at harbour set for auction

Multi-agency team on illicit goods says the consignment will be sold in next two weeks ...

Category: business news
13 hours ago, 00:00
@StandardMedia - By: Dominic Omondi
Rai firms tighten grip on local sugar industry

Report by Sugar Directorate looked at sector’s performance in first nine months of 2018. ...

Category: business news
1 day ago, 11:58
@StandardMedia - By: Valentine Kondo
Rwanda seeks to woo investors in bid to explore hydrocarbons

East African Nation, Rwanda is seeking to partner with oil and gas companies to explore Lake Kivu for hydrocarbons said a state official. ...

Category: business news
13 hours ago, 00:09
@StandardMedia - By: Standard Reporter
Stanbic, leasing firm to offer affordable laptops to students

Stanbic Bank has partnered with RentCo Leasing and Cool4School to launch a leasing scheme that will deliver affordable laptops to students. ...

Category: business news
13 hours ago, 00:17
@TheStar - By: Abel Muhatia @muh ...
Give tax breaks to regain exports market — KAM

Manufacturers now want a break from the import declaration fee of two per cent and the railway development levy of 1.5 per cent. Speaking during the unveiling of the sectors deep-dive report on Thursd ...

Category: topnews news business
1 day ago, 13:16
@StandardMedia - By: Reuters
Government to set up gold refinery to help small miners

Kenya has proven deposits of titanium, gold and coal but its mining sector is a relatively small contributor to national output. ...

Category: business news
Our App