Kenya Revenue Authority (KRA) by its notice of 23^rd March, 2020 informed the public that a Capital Gains Tax (CGT) Acknowledgment Slip will no longer be required for the processing of payment of stamp duty on the iTax system.

Clients dealing in the transfers of land in the last three years will have encountered the anomaly of the now discontinued practice, which forced either the buyer or the seller in the transaction to fund or front the CGT obligation well before the transaction was completed; leaving whoever was paying exposed to the risk of non-completion.  The notice is a welcome change in practice and finally gives effect to the orders of the High Court in The Law Society of Kenya versus the Kenya Revenue Authority and the Honourable Attorney General (Petition No. 39 of 2017) which can be accessed here.

However, KRA reiterated that CGT should be paid by the vendor on or before the 20^th day of the following month in which the transfer of property is effected.

March 2020

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