Doing Business in Kenya - RSM International

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4.8.4 De-registration and Disposal of a Business as aGoing ConcernA person may apply to be de-registered if the taxable turnover of goods or services ina period of 12 months does not exceed Shs 5 million; and it is not expected to increasein the next period of 12 months. On receipt of the application, the Commissionershall, if satisfied that the person should be de-registered, de-register that personwith effect from the date when the registered person pays tax due and payable onsupplies made on stock of materials and other goods on which output tax has notbeen paid or on which input tax has been claimed.Where a person ceases to make taxable supplies, he shall, within 30 days fromceasing to make such supplies, notify the Commissioner of the date of cessation andfurnish the Commissioner a return showing details of: i) materials and other goodsin stock and their value and shall pay any tax due thereon and ii) all other taxableassets and their values.In practice, the Commissioner will conduct a VAT audit before granting de-registration.Where a person disposes off a registered business as a going concern to anotherregistered person, and wishes to do so without charging VAT on the assets and stocksbeing transferred, both persons must, within 30 days, provide the Commissioner withdetails of the description, quantities and values of assets and stock of taxable goodson hand at the date of disposal. They should also provide details of the arrangementsmade for transferring the responsibility for keeping the records and producing booksof the business for the period before disposal. Where the Commissioner has anyobjection, he will notify the taxpayers within 14 days, failing which the application isdeemed to be accepted as long as it complies with the requirements. The purchaserwill therefore not claim input VAT on such assets and stock.4.8.5 Continuing Obligations of a TaxpayerA registered person is required to notify details to the Commissioner within 14 daysof the following changes:• Change of address of the place of business;• Additional premises to be used for the purposes of the business;• Premises used for the business ceases to be used;• Business or trading name changed;• An interest of more than 30% of the share capital of a limited company hasbeen acquired by a person or group of persons;• The person authorised to sign returns has changed;• Any changes in the partnership; and• A change in the trade classification or the goods or services supplied.46DOING BUSINESS IN KENYA
4.8.6 Output Tax in Relation to Supply of Goods and ServicesOutput Tax and SupplyOutput tax is the tax due on taxable supplies. A supply is defined to include:• The sale, supply or delivery of taxable goods to another person;• The sale or provision of taxable services to another person;• The appropriation by a registered person of taxable goods or service for his ownuse outside of the business;• Subject to certain exceptions, the making of a gift or providing samples of anytaxable goods or taxable services;• The provision of taxable services by a contractor to himself in constructing abuilding and related civil engineering works for his own use, sale or renting toother persons;• The letting of taxable goods on hire, leasing or other transfers;• The appropriation by a registered person of taxable goods or services for hisown use inside of the business where if supplied by another registered person,the tax charged thereon would have been excluded from the deduction of inputtax; or• Any other disposal of taxable goods or provisions of taxable services.Insurance proceeds for loss of taxable goods and supplies are not deemed to be asupply and not chargeable to output tax.Services are deemed to have been supplied in Kenya and not as services exportedoutside Kenya where:• The supplier has established his business or has a fixed physical establishmentin Kenya and the services are physically used or consumed in Kenya regardlessof the payer’s location; or• In connection with immovable property, the place is situated in Kenya; or• The service in connection with receiving a signal or a television, radio, telephoneor other communication services, the person receiving the signal or services isin Kenya.In the case of transportation service, the transport services shall be deemed to havebeen supplied outside Kenya where the transportation ends outside the countryincluding goods-in-transit passing through Kenya to a foreign destination.Time of SupplyThe time of supply is technically referred to as the tax point. Generally, a tax point inrespect of the supply of goods and services falls on the earliest date on which:• The goods are supplied or the services have been rendered;• An invoice is issued in respect of the supply;DOING BUSINESS IN KENYA47
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Page 32 and 33: Installments Due Date RateNon-Agric
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Page 38 and 39: partnership in which the husband or
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Page 44 and 45: The VAT rates applicable in Kenya a
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Page 50 and 51: 4.8.7 Records, Invoices, Credit and
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Page 58 and 59: granted or is partly granted, the b
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Page 62 and 63: Transit VisasThese are visas requir
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Page 66 and 67: 5.3.2 WagesAlthough the Employment
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Page 70 and 71: 6.0 ACCOUNTING6.1 Statutory Framewo
Page 72 and 73: 7.0 INTELLECTUAL PROPERTYRIGHTSKeny
Page 74 and 75: Years 1 Shs 1,000Year 2 Shs 1,500Ye
Page 76 and 77: 8.0 Listing Rules8.1 The Capital Ma
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Page 80 and 81: 8.3 Payable FeesCompanies pay an in
Page 82 and 83: 9.0 Investing in Kenya9.1 General I
Page 84 and 85: 9.3 Foreign Ownership of Shares and
Page 86 and 87: Contact Details - RSM AshvirRSM Ash
Page 88 and 89: Appendix of Acronyms used in the Bo
Page 90: Notes90DOING BUSINESS IN KENYA

Doing Business in Kenya - RSM International

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