Tax publication on new Inland Revenue Act – EY
The Inland Revenue Bill published by Gazette on 19 June 2017 along with amendments made at the Committee stage was passed by Parliament on 7 September 2017 and will become an Act of Parliament once it receives the certification of the Hon. Speaker. The new Act provide for the following:
i. Repeal the Inland Revenue Act, No. 10 of 2006 and provide transitional provisions
ii. Simplify the income tax law provisions and make it user-friendly
iii. Address various forms of tax base erosions on employment, business, investment and other income
iv. Introduce capital gains tax
The new Act will have a significant impact on taxpayers as it replaces the existing tax law and its long established practices. Hence, the immediate action for taxpayers will be to understand how the new rules will apply in their own circumstances.
Pending the certification by the Hon. Speaker, we have prepared an analysis of the significant contents of the Bill and the amendments made at the Committee stage in the interest of our clients. This publication highlights the significant differences between Inland Revenue Act, No. 10 of 2006 and the proposed law. Other provisions relating to aspects such as administration of tax, determination of residency, payment of tax, communications, forms and notices have not been dealt in this publication. The Act will be implemented with effect from 1 April 2018.
We hope you find this publication timely and useful.
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Tax publication on new Inland Revenue Act – EY
