{"id":60297,"date":"2019-08-28T09:00:43","date_gmt":"2019-08-28T06:00:43","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/business\/?p=60297"},"modified":"2019-08-28T11:13:23","modified_gmt":"2019-08-28T08:13:23","slug":"kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/business\/2019\/08\/kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions\/","title":{"rendered":"KRA to shelve tax exemptions on Capital Gains Tax transactions"},"content":{"rendered":"<div id=\"attachment_60323\" style=\"width: 640px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.capitalfm.co.ke\/business\/files\/2019\/08\/COMMISSIONER-ELIZABETH-MEYO.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-60323\" class=\"size-full wp-image-60323\" src=\"https:\/\/www.capitalfm.co.ke\/business\/files\/2019\/08\/COMMISSIONER-ELIZABETH-MEYO.jpg\" alt=\"\" width=\"630\" height=\"350\" srcset=\"https:\/\/www.capitalfm.co.ke\/business\/files\/2019\/08\/COMMISSIONER-ELIZABETH-MEYO.jpg 630w, https:\/\/www.capitalfm.co.ke\/business\/files\/2019\/08\/COMMISSIONER-ELIZABETH-MEYO-300x167.jpg 300w\" sizes=\"auto, (max-width: 630px) 100vw, 630px\" \/><\/a><p id=\"caption-attachment-60323\" class=\"wp-caption-text\">In a statement released on Tuesday, KRA Domestic Taxes Department Commissioner Elizabeth Meyo (pictured) said the administration of the tax has been migrated to the digital platform in a bid to catch tax cheats\/FILE &#8211; KRA<\/p><\/div>\n<p><strong>NAIROBI, Kenya, Aug 28 \u2013<\/strong> <strong>The Kenya Revenue Authority (KRA) has announced plans to shelve tax exemptions on some transactions that include the sale and transfer of property.<\/strong><\/p>\n<p>The announcement comes at a time where the tax collector said it had enhanced its online tax management system \u2013 iTax \u2013 through the development of exemption functions on Capital Gains Tax (CGT) transactions.<\/p>\n<p>In a statement released on Tuesday, KRA Domestic Taxes Department Commissioner Elizabeth Meyo said the administration of the tax has been migrated to the digital platform in a bid to catch tax cheats.<\/p>\n<p>\u201cThrough the system enhancement, all property transfer transactions declared as exempt from CGT will go through a verification and approval process,\u201d read the statement.<\/p>\n<p>She also stated that the authority has been mandated to give permission for transfers once the stated guidelines have been met.<\/p>\n<p>\u201cKRA shall grant or deny CGT exemptions depending on whether or not the transactions meet the exemption guidelines provided for in the Income Tax Act,\u201d she added.<\/p>\n<p>CGT is a tax chargeable on the transfer of a property such as land and buildings located within Kenya.<\/p>\n<p>The system only exempts transactions that involve land whose value is not more than Sh3 million, agricultural property having an area of fewer than fifty acres and property which is transferred or sold for the purpose of administering the estate of a deceased person.<\/p>\n<p>KRA said that it managed to increase its revenue collection by July 2019 following the roll out of the new mechanism on CGT.<\/p>\n<p>\u201cKRA\u2019s collection on Capital Gains Tax in July 2019 to Sh580 million against a target of Sh391.2 million, which translated to a revenue performance of 151 percent on the CGT tax head,\u201d said the tax collector.<\/p>\n<p>With the new measures on CGT transactions, coupled with the revision of the CGT rate from five percent as proposed in the 2019\/2020 Budget Statement to 12.5 percent effective October 1, 2019, KRA projects to realize more revenue on CGT in the current financial year.<\/p>\n<p>Capital Gains Tax itself is also a tax base expansion measure to tap revenue from taxable transactions involving transfer of properties.<\/p>\n<p>KRA has ensured automation of CGT on iTax, a strategy that marked a 100 per cent turning point from manual administration of CGT to online.<\/p>\n<p>In 2017, KRA further twined CGT with stamp duty in the system, which made it mandatory for transacting parties to declare CGT before paying stamp duty.<\/p>\n<p>These measures have seen KRA grow CGT revenues from Sh635 million in 2015 when the tax was reintroduced to an average of Sh3 billion in the last financial year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NAIROBI, Kenya, Aug 28 \u2013 The Kenya Revenue Authority (KRA) has announced plans to shelve tax exemptions on some transactions that include the sale and transfer of property. The announcement comes at a time where the tax collector said it had enhanced its online tax management system \u2013 iTax \u2013 through the development of exemption [&hellip;]<\/p>\n","protected":false},"author":14124,"featured_media":60323,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,1,687],"tags":[],"coauthors":[864],"class_list":["post-60297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-kenya","category-top-stories"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>KRA to shelve tax exemptions on Capital Gains Tax transactions - Capital Business<\/title>\n<meta name=\"description\" content=\"NAIROBI, Kenya, Aug 28 \u2013 The Kenya Revenue Authority (KRA) has announced plans to shelve tax exemptions on some transactions that include the sale and Kenya breaking news | Kenya news today |\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.capitalfm.co.ke\/business\/2019\/08\/kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"KRA to shelve tax exemptions on Capital Gains Tax transactions\" \/>\n<meta property=\"og:description\" content=\"NAIROBI, Kenya, Aug 28 \u2013 The Kenya Revenue Authority (KRA) has announced plans to shelve tax exemptions on some transactions that include the sale and Kenya breaking news | Kenya news today |\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.capitalfm.co.ke\/business\/2019\/08\/kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions\/\" \/>\n<meta property=\"og:site_name\" content=\"Capital Business\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/facebook.com\/capitalfmkenya\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-28T06:00:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-08-28T08:13:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.capitalfm.co.ke\/business\/files\/2019\/08\/COMMISSIONER-ELIZABETH-MEYO.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"630\" \/>\n\t<meta property=\"og:image:height\" content=\"350\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"JULIE OWINO\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@capitalfmkenya\" \/>\n<meta name=\"twitter:site\" content=\"@capitalfmkenya\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"JULIE OWINO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/business\\\/2019\\\/08\\\/kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/business\\\/2019\\\/08\\\/kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions\\\/\"},\"author\":{\"name\":\"JULIE OWINO\",\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/business\\\/#\\\/schema\\\/person\\\/3e7e200af1018078215b6fd2d3222bec\"},\"headline\":\"KRA to shelve tax exemptions on Capital Gains Tax transactions\",\"datePublished\":\"2019-08-28T06:00:43+00:00\",\"dateModified\":\"2019-08-28T08:13:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/business\\\/2019\\\/08\\\/kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions\\\/\"},\"wordCount\":476,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/business\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/business\\\/2019\\\/08\\\/kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/business\\\/files\\\/2019\\\/08\\\/COMMISSIONER-ELIZABETH-MEYO.jpg\",\"articleSection\":[\"Finance\",\"Kenya\",\"Top Story\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/business\\\/2019\\\/08\\\/kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions\\\/\",\"url\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/business\\\/2019\\\/08\\\/kra-to-shelve-tax-exemptions-on-capital-gains-tax-transactions\\\/\",\"name\":\"KRA to shelve tax exemptions on Capital Gains Tax transactions - 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