2024 tax bills related to gambling losses

The Bill proposes the following changes with regards to employment income: The Bills seeks to remedy this by ensuring that Companies whose gross interest paid or payable to a non-resident person exceeds 30% of the Company’s EBITDA and has foreign exchange losses, can defer such losses to three subsequent years. The 2021 Finance Act introduced a new rule with regards to interest restriction, however it did not provide clarity as to the treatment of foreign exchange losses arising from interest paid or payable to non-residents. Prior to 2022 Companies which were thinly capitalized and had foreign exchange losses arising from loans advanced by foreign related entities were required to defer such foreign losses until thin capitalization reverses. If this proposal is retained, payments made to digital content creators for offering advertisement, sponsorship, affiliate marketing, subscription services, merchandise sales, crowd funding through electronic media or channel will attract withholding tax at 15%.Įffective Date: 1 st January 2024 Deferment of Foreign exchange losses The Bill seeks to expand the tax base by bringing payment made to digital content creators to the ambit of withholding tax. This is an attempt to provide clarity as to what constitutes winning subjected to withholding tax as previously this has been an area of contention between KRA and the Betting Gaming and Lottery Companies. The Bill introduces a new definition of winning to mean payout from a betting, gaming, lottery, prize completion, gambling or similar transaction without deducting the amount staked or waged. Income Tax Act Proposals: Definition of Winning Except where the effective date has been stated, all the other provisions will come into effect on 1 st July 2023 if the Bill is approved by parliament and assented to by the President. We have discussed below some of tax proposal contained therein. The 2023/2024 Finance Bill (“Bill”) was tabled in parliament on 28 th April 2023 and it contains the tax measures the government intends to implement so as to raise revenue to finance the various projects as contained in their manifesto.

2024 tax bills related to gambling losses