KRA seeks compliance with capital gains tax

Kenya Revenue Authority is set to integrate stamp duty declaration with the iTax system as it seeks to ensure compliance with the soon-to-be re-introduced capital gains tax.

The taxman said it is developing a module within the system that will allow land buyers to make electronic declarations of stamp duty as is the case with all other forms of taxes now.

It is anticipated that the move will simplify compliance with capital gains tax as well as ensure the authority easily tracks land and property transactions in the country beginning next month.

“The development of the new iTax stamp duty and capital gains declaration platform is expected to be concluded by February 2015,” KRA commissioner general John Njiraini told journalists on Thursday.

TAPPING REVENUE
Mr Njiraini said re-introduction of capital gains tax after a 30-year suspension seeks to tap revenue from sectors that have been generating a lot of wealth without paying due.

“The truth of the matter is that in the last decade, a lot of wealth has been generated in the property and capital market sectors yet we have shielded them from taxation,” he said.

The taxman has set sights on about Sh7 billion through capital gains tax between next month and June. The revenue shall be applicable on the net gain of the transfer value of land, property and securities with the taxman cautioning against under declaration of the gain.