The Kenya Revenue Authority (KRA) on Thursday, February 13, announced that the new Income Tax Exemption Rules for Charitable Organisations have officially taken effect a year after they were first introduced. "The Kenya Revenue Authority (KRA) notifies taxpayers of the operation of Legal Notice No.105 of 2024, the Income Tax Charitable Organisation and Donations Exemption) Rules, 2024, which came into force on June 18, 2024," KRA stated. "These Rules guide on the requirements for Income Tax exemption under Paragraph 10 of the First Schedule to the Income Tax Act as well as the conditions for deductibility of expenditure on donations under Section 15(2)(w) of the Income Tax Act," the state body added.
Through a statement, the tax collector urged affected organisations to comply with the new rules or risk repercussions.
Kenya Revenue Authority building at Times Towers KENYANS.CO.KE "Applications for Tax exemption received after the effective date of the Rules should comply with the requirements prescribed in the Rules," KRA stated.
Further, KRA informed organisations that had been granted exemptions before the coming into force of the rules should comply with the prescribed regulations by June 18 this year. This is in line with the transition period of one year provided for in the rules.
