Taxation Services
Expertise in Capital Allowances Projects
One of the few remaining significant tax breaks for business, capital allowances cover certain types of capital expenditure. The allowance works by reducing the profit on which tax is calculated. Most allowances are given gradually over a period of years, but some special allowances are allowed 100% up front.
Categories of allowance include plant and machinery, integral features in buildings, remediation of contaminated land and renovation of business premises.
We endeavor to critically assess every project as there is a plethora of detailed rules and regulations. Fortunately, we have extensive expertise in this field and can assist you throughout this process.
Taxation Services
We work closely with our clients, from sole traders through to large limited companies, to help them meet all of their tax compliance obligations. This includes ensuring that all the appropriate deadlines are met and that the maximum amount of tax relief available in accordance with the tax legislation is claimed.
All relevant paperwork and information is provided to Kenya Revenue Authority to minimize any exposure to tax enquiries.
In the event that any such enquiries are raised into the affairs of your business, we have an experienced team to deal with such matters on your behalf.
Our tax team’s enviable reputation is based on a bedrock of trust that has been fostered, in some cases, over a period of decades. It is our willingness to go that extra mile, to seek to put ourselves in our clients’ shoes and our in-depth understanding of our clients’ businesses that form the foundation of our enduring client relationships.
Tax for Individuals
The taxation of individuals in Kenya is becoming increasingly complex, with greater responsibility being passed to individuals to understand their tax compliance obligations. ZACK WANJAMA CPAK AND COMPANY ASSOCIATES (zwcca) has a team dedicated to assisting individuals with both tax reporting and advising on tax reliefs and opportunities.
This includes:
- All areas of self-assessment;
- Assisting with PAYE matters and status reviews;
- Tax rules for the self-employed; assisting with enquiries and investigations;
- Residency matters (both arriving and leaving the Kenya) and tax treaties;
- Capital gains tax and the applicable reliefs; and
- Inheritance tax reporting and planning
Tax for Partnerships
Partners in firms are taxed on their share of the profits of the firm for the tax year with each partner effectively taxed as if he was a self-employed business, with profits equal to his share of the profits of the firm.
So instead of tax being deducted from your earnings at source, you should be prepared to receive a bill at some time in the future. This can come as an unwelcome surprise if you have failed to put sufficient funds aside.
We will give you as much advance warning as possible of your likely amount and timing of tax payments due as part of our comprehensive advisory service.
Tax for Companies
Corporation tax self-assessment requires companies to work out their own tax bills, as part of their return obligations and account for the ‘self-assessed’ liability to corporation tax to Kenya Revenue Authority.
In the absence of a return, Kenya Revenue Authority may make a determination of the tax to the best of its information and belief. The determination can be displaced only by filing a completed return and self-assessment.
We will give you as much advance warning as possible of your amount and timing of tax payments due as part of our comprehensive compliance and advisory service.
VAT and Custom Duty
A complex tax that can often be overlooked, VAT typically comprises a significant part of most company’s cash flow operations.
With VAT legislation becoming more restrictive and KRA becoming increasingly aggressive in its approach towards business tax compliance, it is now more important than ever to ensure that your VAT affairs are in order and that you have been able to maximize the VAT savings available to you and minimize your VAT cost.
We bring practical, tailored, commercial solutions to improve compliance and maximize available reliefs and reduce costs wherever possible without compromising on integrity.
VAT is a notoriously complicated tax and the rate rises and harsher penalty regime introduced in recent years mean the risks it brings have never been higher. VAT is also a transaction based tax, so queries usually demand a quick answer.
Our VAT team has extensive experience in all areas of VAT planning, VAT investigations work and general compliance matters and would be delighted to assist you further.
Looking Out for You
Our VAT specialists make it their business to know enough about yours so that they can anticipate opportunities and problems, and act quickly to deliver a solution, leaving you to get on with your business. We never forget the most important aspect of any VAT solution: it must be practical, it must advise you what to do and it must not create a different problem elsewhere.
A Free Risks & Opportunities Meeting
If you are concerned that you may be missing an opportunity or overlooking a potential risk, or have a particular VAT issue on your mind, then why not ask for one of our “Risks & Opportunities” meetings with a local VAT specialist? The first meeting is free. Taking time to learn more about you and your business will help pinpoint areas where we can work together to make you VAT-efficient.
Key VAT Services Advice
We can consider any VAT issues that might arise from your prospective business plans to make sure that VAT does not compromise these arrangements. We can also help you with implementation. We can also carry out a more general VAT review to enable your business to take a pro-active approach to its VAT affairs. This will either provide comfort in knowing that the business is VAT efficient, or give an early warning of exposure to VAT errors that could give rise to costly assessments, interest charges and penalties from KRA. We may also be able to identify VAT opportunities to improve cash flow.
Outsourcing
We can complete your VAT returns for you either at your premises or at our own, leaving your staff free to give their attention to other business issues. Additionally, we can prepare VAT3A and VAT 3B if you are also required to submit these to KRA, or handle the complex process of making a VAT refund claim to recover VAT incurred. If you wish to keep the completion of returns in-house, we can provide a review service to validate their correct completion. Our team can also assist with special projects arising from case law, where you may have an opportunity for a VAT windfall claim.
International
Should you be planning a multi-jurisdictional activity, our team’s strong project management skills can help co-ordinate advice from all the countries involved to help you identify the key issues and risks you will need to address to help ensure compliance.
Audits and Investigations by KRA
All businesses have to deal with KRA from time to time and there are a number of ways we can help to relieve the pressure this puts on your organization. Where a difficult VAT matter arises between VAT inspections, you can instruct us to discuss the situation with KRA on your behalf to negotiate an acceptable solution. Our team can also be available to help you on the day of a VAT inspection – either on site or at the end of a telephone- to assist with any questions raised by KRA. If you prefer, we can carry out a risk assessment of the VAT position prior to their visit and advise on how to deal with any problems this highlights. We can also help with any VAT issues that arise after the visit.
If KRA threatens to raise an assessment, liabilities can often be avoided or mitigated by involving a VAT specialist at an early stage. Our involvement will often achieve a resolution without the need for a tribunal hearing but, in the event that an appeal to a Tribunal is necessary, we can provide representation or determine the cost of a qualified advocate to present the case on your behalf.