By GEOFFREY IRUNGUMore by this AuthorWithholding tax on foreigners should be scrapped or drastically slashed under a reformed Income Tax Act, PricewaterhouseCoopers (PwC) has recommended. PwC reckons that imposing the tax on amounts will be double taxation because the same firms or individuals are also expected to pay tax in home countries. “The withholding tax that is imposed on non-residents ought to be removed or reduced by a big margin to remove the element of double taxation,” said Titus Mukora, a tax partner with PwC. Mr Mukora said removing or cutting the tax substantially was one way of encouraging foreign investments in Kenya noting that many countries do not apply the withholding tax on foreigners. Tax revenues have been constrained by a soft economy where income tax revenue has stagnated due to loss of thousands of jobs in many companies as well as low profitability or losses.

Source: Daily Nation April 16, 2018 07:30 UTC