Finance Act 2016 - Income Tax amendments


The recently passed Finance Act 2016 is being implemented. If you own an SME like I do, then you would be especially interested in the Income Tax amendments. These ones particularly interested me:

Section 1 - Amendment of Section 2 of the Income Tax Act 2000:

Micro Taxpayer means a taxpayer whose annual turnover is between Le10,000,000 and Le90,000,000.

Small Taxpayer means a taxpayer whose annual turnover of between Le90,000,000 and Le350,000,000.

Section 15 - Part 1 of the First Schedule of the Income Tax Act 2000 is amended by the repeal and replacement of the annual taxable threshold and corresponding rate with the following:-

Section 37 - Management and Technical Service fees

The withholding tax on management and technical fees shall be increased from 10 percent to 15 percent of the value of such services.

Section 38 - Employment of Women

Any business employing a female employee in a management position between 1st day of January 2016 and 31st day of December 2018 shall be eligible to a tax credit at a rate of 6.5% on the PAYE of that female employee.

#NationalRevenueAuthority #NRA #IncomeTax #payroll #withholdingtax #employee #taxpayer

424 views0 comments