BY CORRESPONDENT
PHOTOS BY DHRUV SHAH
On 4th February, an expert-led presentation by RSM Eastern Africa was hosted by United Asian Network (UAN), India Kenya Business Council (IKBC), Visa Oshwal Community (VOC), Shree Cutchi Leva Patel Samaj (SCLPS), Hindu Council of Kenya (HCK) and the Ismaili Community at the Oshwal Centre.
The insightful tax seminar titled “Tax: A 360-Degree Overview” brought together finance professionals, legal experts and business leaders to discuss evolving tax regulations and their implications on businesses.
Tax Director at RSM Jilna Shah led the conversation by providing an in-depth analysis of income tax developments including interest restriction, withholding taxes on goods, eTIMS requirements and changes to payroll deductions. She advised that the change from thin capitalisation to interest restriction (interest on foreign loans exceeding 30% EBITDA) will require companies to reassess their foreign sources of financing.
Representing the Kenya Revenue Authority (KRA) in his capacity as a Director, Ashif Kassam emphasised the critical role of timely and accurate tax record-keeping in reducing the risk of costly disputes stating, “Tax authorities are becoming more sophisticated, and businesses must adopt best practices to manage their compliance risks effectively.”
On shareholding in foreign holding companies, he emphasised that a foreign company may be a tax resident in Kenya if its central management and control is exercised directly or indirectly in Kenya; and then encouraged businesses to take advantage of the tax amnesty lapsing on 30th June, 2025.
Speakers Nzioka Wang’ombe and Josphat Karanja discussed the auto-population of VAT returns, saying that taxpayers will download prefilled VAT returns with some restrictions on editing them as a way of sealing tax leakages, improving accuracy and efficiency. On the global front, they emphasised the role of accurate documentation and advance rulings in addressing emerging trends in customs compliance.
The seminar also featured insights on transfer pricing compliance and stressed the importance of adhering to the arm’s length principle. “Non-compliance can attract severe penalties and double taxation issues that no business can afford to overlook. Our taxman has learnt how to shoot (tax) without missing, and therefore, compliance is the only way taxpayers can fly without perching,” noted Tax Consultant at RSM Samuel Maina.
VOC Treasurer Priit Shah termed the seminar “an opportunity to exchange ideas and explore the complexities of tax-related matters” adding “together, we can gain valuable insights and work towards a more informed and prosperous future.”
SCLPS Chairman Ramji Varsani lauded the seminar as a valuable platform for knowledge-sharing highlighting, “It’s encouraging to see professionals come together to navigate the complexities of tax regulations collaboratively. RSM Eastern Africa continues to play a key role in facilitating these conversations.”