what do you mean ericks? on what unit trusts? thats the 2nd reason I dont keep my money with Mr. Gulf! kindly clarify...

if you can not be kind,at least have the decency to be vague

@Ericks;

Interest income from money-market unit trusts is NOT exempt from tax!

Therefore,Unit managers are required to deduct Withholding tax before paying the interest.

However; capital appreciation of an equity fund unit trust is exempt-there is not capital gains tax in Kenya [they tried to introduce it a couple of years back but parliament shot it down]

FYI: Just to clarify; withholding tax is not a FINAL tax! It is an installment tax. This means that you must pay the full tax (depending on your tax bracket) of the interest earned. Check your tax return form to see how this is done.

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

@Ericks;

You will only have a problem with KRA if you have not been declaring the income from your unit trust in your annual return

Remember that the law requires you to declare ALL your income. Have a look at the tax return form and you will see a section on INTEREST INCOME
Deducting [and remitting] withholding tax is the responsibility of the person paying the interest (e.g.,a bank,a fund manager,a client paying a consultant etc) The recipient of the interest (i.e. you) is responsible for declaring it at the end of the year.

FYI: don't fear the taxman; he is actually very friendly when you declare all your income...you can even negotiate a payment plan if you are having cash-flow problems.

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

Spet...who?

that's a difficult one...

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

@ Ericks

I am not sure. I was only told so by a rela who works for a tax/audit companies ...apparently it has been a big undercover issue for months now,and finally KRA has put its foot down. I guess it remains to be seen how the ones that have not been paying will handle it.

I do not think it will affect investors - maybe the companies.


Common sense is never common