Event report

Impact of Finance Act 2023 on Payrolls for Employers.

Webinar in partnership with Mazars in Kenya.

On 9th of August 2023, the French Chamber of Commerce Kenya had the pleasure of hosting an engaging and information-packed webinar in partnership with our selective provider, Mazars in Kenya. Peter Momanyi, Tax Director at Mazars, shared an in-depth look into the obligations of employers with regard to payrolls post the Finance Act 2023. He preceded by addressing the status of the Act in view of the legal tussles. As it stands, an appeal was filed at the Supreme Court following the Court of Appeal’s decision to lift conservatory orders issued by the High court. At the end of his presentation, he put forward practical options on implementation of the act.

The act proposes several changes relating to taxation of benefits and remittances made by the employer. Where the employee is offered company shares by a startup in lieu of cash emoluments, it provides for timelines for taxation of the same. It also introduces new requirements in the context of award of income tax exemption certificates to bodies of a public character:

  • requirement of non-discrimination
  • requirements not to consider the level of fees or charges levied for the services rendered.

The webinar also saw provisions on increased PAYE, withholding tax on: digital content monetization, sales promotion, marketing and advertising, well explained.

Among other questions, the employers in attendance sought clarification on the way forward in the event that they made remittances to the tax authority guided by the previous provisions. Closely related to that was the concern of those who complied with the Act’s provisions, should the implementation date be deferred. Peter Momanyi posited that the former are at liberty to amend and declare additional taxes, while the later are entitled to apply for tax refund, albeit a protracted process. In conclusion he spoke on the fact that the penalty regime had not been updated as at the time of the webinar, but cautioned that it could be subject to change.

We appreciate all who made time to attend and Mazars in Kenya for making this a highly insightful webinar.

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