A GUIDE TO DOING BUSINESS IN KENYA

Transcription

1 A GUIDE TO DOING BUSINESS IN KENYA THE POWER OF BEING UNDERSTOOD AUDIT l TAX l CONSULTING

2 CONTENTS ABOUT RSM... 6 GENERAL... 8 INTRODUCTION... 8 POPULATION AND LANGUAGE... 8 FOREIGN RELATIONS... 9 BUSINESS INFRASTRUCTURE... 9 Power and Energy... 9 Telecommunication... 9 Road Transport Air Transport VISION 2030 AND THE ECONOMY Agriculture Manufacturing Tourism Financial Building and Construction EAST AFRICAN COMMUNITY RELATIONSHIP OF GOVERNMENT AND BUSINESS COMPETITION LAW East African Community (EAC) Competition Act BUSINESS ENTITIES TYPES OF BUSINESS ENTITIES AND THEIR FORMATION PROCEDURES Registered Companies (Private and Public) Branch Office of a Foreign Company Partnership Sole Proprietorship Societies Personal Identification Number and VAT Registration Accounting Period Ends Investment Approval Process CAPITAL CONTRIBUTION Capital Regulation of Foreign Investment Thin Capitalisation AUDIT REQUIREMENTS COMPANY SECRETARY ANNUAL STATUTORY FILING OTHER RETURNS ACCOUNTING Statutory Framework Governing Financial Reporting in Kenya Financial Reporting and Auditing Standards TAXATION CORPORATE TAX Basis of Taxation and Tax Rates Specified Sources of Income I P a g e DOING BUSINESS IN KENYA

3 Export Processing Zone Enterprises Special Economic Zone Enterprises Deductibility of Expenses Capital Allowances Business with Resident and Non-Resident Persons, Transfer Pricing and Anti-Tax Avoidance Provisions Tax Returns and Dividend Tax Account Advance, Instalment and Final Tax Payments and Deadlines Turnover Tax PERSONAL INCOME TAX Introduction Basis of Taxation and Tax Rates Personal and Other Reliefs Taxation of Benefits Tax Returns and Payment Deadlines Advance, Instalment and Final Tax Payments and Deadlines WITHHOLDING TAX TAX PROCEDURES ACT TAX PENALTIES TAX OBJECTION AND APPEALS DOUBLE TAXATION TREATIES VALUE ADDED TAX Basic Concepts and Rates Application for Registration Pre-registration Input VAT De-registration Continuing Obligations of a Taxpayer Output Tax in Relation to Supply of Goods and Services Records, Invoices, Credit and Debit Notes Bad Debts Input Tax Collection and Refund of Tax Withholding VAT Agents VAT Penalties Value Added Tax Regulations, CUSTOMS DUTY Legal and Administrative Framework Import Duties and Levies Determination of Customs Value (Valuation) Export Levy EXCISE DUTY Duty and Application Key Compliance Issues EMPLOYMENT FOREIGN VISA Visa Requirements FOREIGN PERSONNEL Permits and Passes DOING BUSINESS IN KENYA 3 I P a g e

4 Dual Citizenship Permanent Residence LABOUR LAW Employment Contracts Wages Working Hours Overtime Leave Public Holidays STATUTORY DEDUCTIONS TRADE UNION INTELLECTUAL PROPERTY RIGHTS PATENT UTILITY MODEL INDUSTRIAL DESIGN TRADE MARKS COPYRIGHTS LISTING RULES THE CAPITAL MARKETS AUTHORITY Types of Listing Markets Main Investments Market Segment Alternative Investments Market Segment Growth Enterprise Market Segment Fixed Income Securities Market Segment LISTING BY INTRODUCTION PAYABLE FEES LISTING INCENTIVES INVESTING IN KENYA GENERAL INFORMATION ABOUT INVESTING IN KENYA Gateway to East Africa Access to Large Pool of Skilled Workers Kenya: Living the Good Life Fully Liberalised Economy Money Transfers Outside Kenya Well Established Local and Foreign Private Sector TAX-RELATED INCENTIVES FOR INVESTING IN KENYA Tax Treaties and Investment Promotion Bilateral Trade Agreements Investment Allowances Capital Gains Received Dividends FOREIGN OWNERSHIP OF SHARES AND LAND Shares in Companies Incorporated in Kenya Restrictions on Land Ownership Investment Regulation THE INVESTMENT PROMOTION ACT APPENDIX OF ACRONYMS USED IN THE BOOKLET CONTACTS 4 I P a g e DOING BUSINESS IN KENYA

5 For the full Doing Business in Kenya book - please contact us.

6 CONTACTS Kenya Nairobi 1st Floor, Pacis Centre, Slip Road off Waiyaki Way, Westlands P.O. Box , Nairobi, Kenya T / /8/9 M / F E info@ke.rsm-ea.com Contact: Ashif Kassam (Executive Chairman) Tanzania Dar es Salaam 16th Floor, Golden Jubilee Towers, Ohio Street P.O. Box Dar es Salaam, Tanzania T / 15 F E info@tz.rsm-ea.com Contact: Lina Ratansi (Group Chief Executive) Mombasa 3rd Floor, Bayview Place, Moi Avenue P.O. Box Mombasa, Kenya T / / F E infomsa@ke.rsm-ea.com Contact: Nihla Mazrui Uganda Kampala 6th Floor, DTB Centre, Plot 17 / 19, Kampala Road P.O. Box Kampala, Uganda T / 9 info@ug.rsm-ea.com Contact: John Walabyeki (Managing Partner) THE POWER OF BEING UNDERSTOOD AUDIT TAX CONSULTING

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