EXEMPT SERVICES
The supply of the following services shall be exempt supplies –
1. The following financial services-- (a) the operation of current, deposit or savings accounts, including the provision of account statements;
- (b) the issue, transfer, receipt or any other dealing with money, including money transfer services, and accepting over the counter payments of household bills, but excluding the services of carriage of cash, restocking of cash machines, sorting or counting of money;
- (c) issuing of credit and debit cards;
- (d) automated teller machine transactions, excluding the supply of automated teller machines and the software to run it;
- (e) telegraphic money transfer services;
- (f) foreign exchange transactions, including the supply of foreign drafts and international money orders;
- (g) cheque handling, processing, clearing and settlement, including special clearance or cancellation of cheques;
- (h) the making of any advances or the granting of any credit;
- (i) issuance of securities for money, including bills of exchange, promissory notes, money and postal orders;
- (j) the provision of guarantees, letters of credit and acceptance and other forms of documentary credit;
- (k) the issue, transfer, receipt or any other dealing with bonds, Sukuk debentures, treasury bills, shares and stocks and other forms of security or secondary security; Finance Act, 2017 Effective 3rd April 2017
- (l) the assignment of a debt for consideration;
- (m) the provision of the above financial services on behalf of another on a commission basis.
-
(n)
asset transfers and other transactions related to the transfer of assets into Real Estate Investment Trusts and Asset Backed SecuritiesFinance Act, 2017 Effective 3rd April 2017,,Finance Act, 2018 Effective 1st July 2018
- (o) any services set out in items (a) to (n) that are structured in conformity with Islamic finance. Finance Act, 2017 Effective 3rd April 2017
- (a) management and related insurance consultancy services;
- (b) actuarial services; and
- (c) services of insurance assessors and loss adjusters;
3. The supply of education services.
For the purposes of this paragraph, education services means education provided by-
5. Agricultural, animal husbandry and horticultural services.
6. Burial and cremation services.
7. Transportation of passengers by any means of conveyance excluding international air transport or where the means of conveyance is hired or chartered.
8. Supply by way of sale, renting, leasing, hiring, letting of land or residential premises;
For the purposes of this paragraph, education services means education provided by-
- (a) a pre-primary , primary, or secondary school;
- (b) a technical college or university ;
- (c) an institution established for the promotion of adult education, vocational training or, technical education but shall not apply in respect of business or user training and other consultancy services designed to improve work practices and efficiency of an organization.
5. Agricultural, animal husbandry and horticultural services.
6. Burial and cremation services.
7. Transportation of passengers by any means of conveyance excluding international air transport or where the means of conveyance is hired or chartered.
8. Supply by way of sale, renting, leasing, hiring, letting of land or residential premises;
“residential premises” means land or a building occupied or capable of being occupied
as a residence, but not including hotel or holiday accommodation.
- Provided that this paragraph shall not apply where such services are supplied in respect of –
- (a) car park services; or
- (b) conference or exhibition services, except where such services are provided for educational institutions as part of learning”;
10. Insurance agency, insurance brokerage, stock exchange brokerage “securities brokerage services” and tea and coffee brokerage services.
10. Tea and coffee brokerage services. (TaxLAA-No1-2020 wef-25April2020)
11. The supply of –
15. Car park services provided by National Government, County Government, any Political Sub-division thereof by an employer to his employees on the premises of the employer.
16. The supply of airtime by any person other than by a provider of cellular mobile telephone services or wireless telephone services.
17. Betting, gaming and lotteries services.
18. Hiring, leasing and chartering of aircrafts excluding helicopters of tariff numbers 8802.11.00 and
18A. Transportation of sugarcane from farms to milling factories.(Finance Act 2021- wef-01July2021)
19.The supply of taxable services in respect of goods in transit Finance Act, 2015 effective 12th June 2015
20. Taxable services for direct and exclusive use in the implementation of official aid funded projects upon approval by the Cabinet Secretary to the National Treasury.
21. Services imported or procured locally for use by the local film producers or local film agentscertified upon recommendation by the Kenya Film Commission, subject to
approval by the Cabinet Secretary for the National Treasury. Finance Act, 2016 Effective 9th June 2016
22. Taxable services provided for direct and exclusive use in the construction and
infrastructural works in industrial and recreational parks of one hundred acres or more,
approved by the Cabinet Secretary for the National Treasury upon recommendation by
the Cabinet Secretary responsible for Industrialization including those outside special economic zones approved by the Cabinet Secretary
for the National Treasury Finance Act, 2016 Effective 9th June 2016, , (TaxLAA-No1-2020 wef-25April2020)
23. Supply of sewerage services by the national government, a county government, any political subdivision thereof or a person approved by the Cabinet Secretary for the time being responsible for water development.
24.The supply of taxable services to special economic zone enterprises, developers and
operators licensed under the Special Economic Zones Act. Entry fees into the national
parks and national reserves. Finance Act, 2016 Effective 9th June 2016
25. The services of tour operators, excluding in-house supplies. Finance Act, 2016 Effective 9th June 2016
26. Taxable services for direct and exclusive use for the construction of tourism facilities, recreational parks of fifty acres or more, convention and conference facilities upon the recommendation by the Cabinet Secretary responsible for matters relating to recreational parks. Finance Act, 2016 Effective 9th June 2016
27. Taxable services for direct and exclusive use for the construction of specialized hospitals with accommodation facilities upon recommendation by the Cabinet Secretary responsible for health, who shall issue guidelines for the criteria to determine the eligibility for the exemption. Finance Act, 2016 Effective 9th June 2016
28. Taxable services, procured locally or imported for the construction of liquefied petroleum gas storage facilities with a minimum capital investment of four billion shillings and a minimum storage capacity of fifteen thousand metric tonnes as approved by Cabinet Secretary for National Treasury upon recommendation by the Cabinet Secretary responsible for liquefied petroleum gas.Statutory Amendments Act No 11 of 2017(TaxLAA-No1-2020 wef-25April2020)
29. Postal services provided through the supply of postage stamps, including rental of post boxes or mail bags and any subsidiary services thereto. Finance Act, 2018 Effective 1st July 2018
11. The supply of –
- (a) services rendered by educational, political, religious, welfare and other philanthropic associations to their members, or
- (b) social welfare services provided by charitable organizations registered as such, or which are exempted from registration, by the Registrar of Societies under section 10 of the Societies Act Cap 108, or by the Non- Governmental Organizations Co-ordination Board under section 10 of the Non Governmental Organization Co-ordination Act, No. 19 of 1990 and whose income is exempt from tax under paragraph 10 of the First Schedule to the Income Tax Act, Cap 470, and approved by the Commissioner of Social Services.
- Provided that this paragraph shall not apply where any such services are rendered by way of business.
- (a) stage plays and performances which are conducted by educational institutions, approved by the Cabinet Secretary for the time being responsible for education as part of learning;
- (b) sports, games or cultural performances conducted under the auspices of the Ministry for the time being responsible for culture and social services”;
- (a) establishments operated by an educational training institutions approved by the Cabinet Secretary for the time being responsible for education for the use of the staff and students by that institution; or
- (b) establishments operated by a medical institution approved by the Cabinet Secretary for the time being responsible for health for the use by the staff and patients of such institutions; or
- (c) canteens and cafeterias operated by an employer for the benefit of his employees.
15. Car park services provided by National Government, County Government, any Political Sub-division thereof by an employer to his employees on the premises of the employer.
16. The supply of airtime by any person other than by a provider of cellular mobile telephone services or wireless telephone services.
17. Betting, gaming and lotteries services.
18. Hiring, leasing and chartering of aircrafts excluding helicopters of tariff numbers 8802.11.00 and
8802.12.00 (Finance Act 2020- wef-30June2020)
19.
20. Taxable services for direct and exclusive use in the implementation of official aid funded projects upon approval by the Cabinet Secretary to the National Treasury.
21. Services imported or procured locally for use by the local film producers or local film agents
23. Supply of sewerage services by the national government, a county government, any political subdivision thereof or a person approved by the Cabinet Secretary for the time being responsible for water development.
24.
25. The services of tour operators, excluding in-house supplies. Finance Act, 2016 Effective 9th June 2016
26. Taxable services for direct and exclusive use for the construction of tourism facilities, recreational parks of fifty acres or more, convention and conference facilities upon the recommendation by the Cabinet Secretary responsible for matters relating to recreational parks. Finance Act, 2016 Effective 9th June 2016
27. Taxable services for direct and exclusive use for the construction of specialized hospitals with accommodation facilities upon recommendation by the Cabinet Secretary responsible for health, who shall issue guidelines for the criteria to determine the eligibility for the exemption. Finance Act, 2016 Effective 9th June 2016
28. Taxable services, procured locally or imported for the construction of liquefied petroleum gas storage facilities with a minimum capital investment of four billion shillings and a minimum storage capacity of fifteen thousand metric tonnes as approved by Cabinet Secretary for National Treasury upon recommendation by the Cabinet Secretary responsible for liquefied petroleum gas.
29. Postal services provided through the supply of postage stamps, including rental of post boxes or mail bags and any subsidiary services thereto. Finance Act, 2018 Effective 1st July 2018
30.
31.
32*. The exportation of taxable services**.(Finance Act 2021- wef-01July2021*) (Finance Act 2022-wef-01-July-2022**)
33. The transfer of assets and other transactions related to the transfer of assets into real estate investment trusts and asset backed securities.(Finance Act 2021- wef-01July2021)
34*. Taxable goods, inputs and raw materials services** imported or locally purchased by a company which-
- (a) is engaged in business under a special operating framework arrangement with the Government; and
- (b) is incorporated for purposes of undertaking the manufacture of human vaccines or other manufacturing activities including refining**; and whose capital investment is at least ten billion shillings, subject to approval of the Cabinet Secretary for the National Treasury, on recommendation of the Cabinet Secretary for health. (Finance Act 2022-wef-01-July-2022*) (Finance Act 2023 wef 1st-July-2023 s37**)
35. Transfer of a business as a going concern. (TLAA 2024 wef 27th December, 2024 S21)
Comments
Post a Comment