KRA Calls For Public Participation On Proposed Tax Exemption Rules For Charity Organisations

• KRA is seeking public opinions on the 2023 income tax rules drafts focusing on guidelines for tax exemptions to charitable organisations
• The draft outlines guidelines and administrative procedures for granting tax exemptions to charitable organisations
• Charitable organisations may be exempt from tax if their income is spent in Kenya or for purposes benefiting the residents of Kenya

Elijah Ntongai, a journalist at TUKO.co.ke, leverages more than three years of expertise in financial, business, and technology research, providing profound insights into both Kenyan and global economic trends.

Nairobi- The Kenya Revenue Authority (KRA) has invited public input on the draft income tax exemption rules for charity organisations that receive donations.

In a public notice, KRA encouraged interested parties to submit their opinions before the December 29, 2023 deadline.

How does this benefit Kenyans?

The draft rules state that charitable organisations accruing income in or derived from Kenya may be exempt from tax if the commissioner is satisfied that the organisation's income will be used in Kenya for purposes benefiting the residents of Kenya.

In accordance with paragraph 10 of the draft rules, charitable organisations will be exempted from tax if the organisation serves the following purposes benefitting Kenyans:

(a) the relief of the poverty; or

(b) the relief of distress of the public; or

(c) the advancement of religion; or

(d) the advancement of education

What is the purpose of the tax exemption rules?

The draft income tax rules aim to clarify the procedures for granting tax exemptions to charitable organisations and offer guidance on donations made to such institutions.

Eligibility for the tax exemption rules

The commissioner within the tax authority will employ specific guidelines to assess whether a charitable organisation's purpose and activities contribute to public benefit.

These guidelines include assessing whether the beneficiaries are identifiable and can attest to the benefits ensuring the charitable activities align with the organisation's stated purpose.

How to submit your comments to KRA

Interested individuals and organisations are urged to submit their contributions either by mail to the Commissioner General, Kenya Revenue Authority, P.O Box 48240-00100, Nairobi, or via email to stakeholder.engagement@kra.go.ke.

KRA hits KSh 1 trillion in tax collection

Earlier, TUKO.co.ke reported that KRA had crossed the one trillion shilling mark in revenue collection as of December 8, 2023.

Although the country encountered economic shocks and faced adverse economic indicators, KRA recorded a 15.8% surge in revenue growth throughout November, culminating in a total collection of KSh 1.030 trillion.

"The Authority has maintained an upward trajectory in revenue collection, after recording a 15.8% growth in the month of November. This is after KRA collected KSh 180.714 billion, up from KSh 156.095 billion collected in November 2022," read the press release by KRA.