Daneld

Audit & Tax Consultant

[Daneld @DaneldKemei]

@Retweet_tablike Stephen Letoo tops

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@WashiraX How will one evidence that indeed he/she was living there for the past there years.

[Daneld @DaneldKemei]

@KRACare @WashiraX @KRACorporate Your system does not allow us upload the non eTims CSV file for non eTims expenses.

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@MigunaMiguna @StateHouseKenya @UN You disagree with everything and everyone in your entire life. Where do you get the energy of being this perfect.

[Daneld @DaneldKemei]

@ahmednasirlaw What if he's the master thief.

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@gabrieloguda He also gave us this assurance.

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@OleItumbi Is a situation

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@ledamalekina

[Daneld @DaneldKemei]

@Adele_lide He had a resonating slogan in 2022.
He has nothing to hang on in 2027.

[Daneld @DaneldKemei]

@AlinurMohamed_ Which are these 40 counties

[CPA Wachira Joseph @WashiraX]

Kenya has introduced a new 25% tax on software subscriptions.

One of the principles of a good tax system is simplicity.

Taxes should be easy to understand. Easy to comply with. And inexpensive to administer.

Finance Act 2026 has introduced new rules for software subscriptions.

• The Act now classifies payments for software licences and software subscriptions as royalties.

- As a result, every time you pay an overseas software company, you are now required to withhold 20% tax and remit it to KRA.

- Then pay the software company the remaining 80%.

For example.

Suppose you pay Google, Amazon or Microsoft USD 1,000 every year for software subscriptions.

The law says:
• Confiscate 20%, USD 200.
• Remit it to KRA.

Then pay the software company USD 800.

There is only one problem, however.
- Software subscriptions are paid either in full or not at all.

Google does not care that you have complied with the Kenyan tax laws. You either pay them 1,000 USD or go home.

So what happens to continue using the software and keep KRA happy?

- You pay Google their full USD 1,000.

In doing so, KRA treats the USD 1,000 as the net amount after withholding tax. That means the original invoice is deemed to have been USD 1,250. How?

Ulikua unaangalia mwalimu na ruler ukiuliza hesabu ya cross multiplication itakusaidia aje maishani. Ona Sasa.

If USD 1,000 = 80%,
Then 100% = USD 1,250.

The withholding tax therefore becomes USD 250.

Meaning:
• Google gets their full USD 1,000.
• Then you go back to your pocket to pay KRA USD 250.

Total software cost = USD 1,250.

In effect, the law has quietly introduced a 25% tax on many software subscriptions.

Even if a small taxpayer genuinely wanted to comply, how exactly are they supposed to comply when the giant software company insists on being paid in full?

This is the new law. Adjust accordingly.

[Daneld @DaneldKemei]

@moneyacademyKE I thought they said one month for Nil, 4 months for 'living' persons or individual and 6 months for corporates/artificial persons.....

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@ledamalekina Rubbish

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@moneyacademyKE Welcome news.

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@hon_wamuchomba Lately this old woman uses Sugoi to reason.

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@ledamalekina Says a TUTAM choir cow.

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@jimNjue_ You people are massively campaigning for Ruto. Gachagau facing Ruto will be a cup of tea. He won't even get 2m votes.

[Daneld @DaneldKemei]

@ahmednasirlaw @WMMartha TUTAM

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@DavidNdii The problem of being Govt. You will always see Kenyans as idiots.

[Daneld @DaneldKemei]

@Mustafaahm0 @Onorpik What are these pains for. No one is obligated to "Love" Ruto.