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Digital and Analytics
We have developed distinctive capabilities in digital advisory and data analytics that are key to the success of dynamic organisations.
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Business Consulting
Our business consulting services help organisations improve operational performance and productivity throughout the growth life cycle.
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Corporate Finance & Restructuring
We combine our insights and experience to provide a comprehensive range of advisory and corporate finance and restructuring solutions.
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Internal Audit
Our internal audit service is designed to provide both assurance and consulting assistance on the adequacy and effectiveness of an organisation’s system of internal controls.
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Business Risk Services
Our service is focused on enabling broader risk coverage and proactive management of risks for the achievement of organisational strategy.
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Business Process Solutions
We work with a multitude of organizations to improve their finance function efficiency, reduce costs associated with business processes and provide a complete solution to the challenge faced by South African organizations.
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Programme Assurance & Advisory
Our aim is to protect shareholder value by providing Assurance and Advisory services on change portfolios and large-scale programmes to assist organisations.
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Forensic Services
Our forensic capability is integrated with our wider advisory services – not an add-on.
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Cyber Advisory
Our Cyber Advisory service is designed to help you identify, protect, detect, respond and recover from cyber-attacks.
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IT Advisory Services
We help clients to navigate the complexities and provide you with robust independent assurance that your IT risks, key management priorities and core systems are being appropriately managed.
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SNG ARGEN
We have a dynamic actuarial team set to assist businesses to comply with the audit standards where actuarial services are required.
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General Audit
We provide a sound statutory audit of financial statements specialising in both listed entities and state-owned organisations.
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Financial Services Group (FSG)
The Financial Services Group (FSG) offers specialised audit and advisory solutions to the banking, treasury and financial services sectors.
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Technical Excellence
We have a well-established specialized technical division, with in-depth, local and international knowledge and experience, which consists of three units namely; Accounting, Audit and Sustainability reporting.
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Corporate Tax
We offer your business access to a global network of tax specialists in over 130 countries with extensive corporate tax technical skills to provide meaningful advice and adding value to your organization.
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Value-Added Tax
We can manage your overall exposure to indirect taxes, guide you through complex South African Value-Added Tax (VAT) legislation.
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Global Mobility
Taxes can be complicated, but the SNG Grant Thornton approach is to assist the new assignee with a clear and easy process.
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Customs and Excise Tax
Our Customs and Excise team assist traders with driving cost-effective supply chains while maintaining legitimate trade.
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Tax Technology
This is the lynchpin of our tax audit and advisory approach in making the tax function of our clients effective in data management tools.
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International Tax & Transfer Pricing
Our team is ideally suited to serve large multinationals and other global companies that need on the ground expertise in multiple jurisdictions, given our extensive network of offices around the globe.
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Specific Focus Areas
We have a team of dedicated tax specialists with deep knowledge to bring practical and cost-effective tax solutions to our clients and assist entities operating within these sectors to effectively manage their tax needs.
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Business Consulting
We provide fit-for-purpose solutions to address major challenges the Education sector faces by supporting our clients.
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Employees’ Tax Services
Its important to ensure that the institution complies with the tax legislation and that all payroll records are accurate and complete.
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Programme Assurance & Advisory
The need for sound project management and effective solution delivery gives you the edge in competitive markets.
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Forensic Services
Fraud detection review and forensic investigation for Higher Education
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Digital and Analytics
The digitalisation of processes within the higher education sector leads to increased data generation. This data can be an essential asset when leveraged correctly.
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Cyber Security Services
There is no one-size-fits-all security solution to preventing all attacks, but we have cybersecurity strategies that education institutions can use to minimise cyber threats.
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Sustainable Development Goals (SGDs)
SDG Impact Standards Training Course
Income Tax
Taxation of gains from financial derivatives
The Act has amended the Income Tax Act by introducing tax on gains accruing to non-residents from financial derivatives. The Act defines a financial derivative as:
“A financial instrument is linked to the value of another instrument underlying the transaction which is to be settled at a future date.”
The gains accruing to non-residents shall be subject to withholding tax at 15% subject to Regulations to be issued by the Cabinet Secretary National Treasury. It is important to note that the gains accruing to non-resident persons from derivatives listed on the NSE shall be exempt from the tax.
The Financial derivatives market went live on 4th July 2019 in Nairobi, making it the second derivatives market in Sub-Saharan Africa after the Johannesburg market. The desk has traded over KES 168M since its launch, making it a soft target for the taxman.
This amendment took effect on 1st July 2022.
The Act has introduced an amendment to the Income Tax Act to the effect that a non-resident person with a permanent establishment in Kenya shall be exempt from DST.
Non-resident persons with a PE in Kenya shall no longer be required to account for DST on services rendered through a digital marketplace. This amendment took effect on 1st July 2022
The Act has increased the capital gains tax (CGT) rate from 5% to 15%. Kenya has enjoyed a lower CGT rate compared to its counterparts in the East African region. The sharp increase has elicited an outcry from real estate industry players struggling with reduced spending due to increased inflation.
The amendment is set to take effect on 1st January 2023.
Transfer-Pricing implications for entities operating in a preferential tax regime.
The Act has amended section 18 (A) of the Income Tax Act (ITA) to include within the ambit of transfer pricing (TP) transactions between resident persons and the following persons located in a preferential tax regime:
• A related resident person;
• A non-resident person;
• An associated enterprise of a non-resident person; and
• A permanent establishment of a non-resident person.
• Any Kenyan legislation, regulation or administrative practice which provides a preferential rate of tax to such income or profit, including reductions in the tax rate or the tax base; or
• Does not tax income;
• Taxes income at a rate that is less than 20%;
• Does not have a framework for the exchange of information;
• Does not allow access to banking information or Lacks transparency on corporate structure, ownership of legal entities located therein, beneficial owners of income or capital, financial disclosure or regulatory supervision.
The amendments will not only expand the tax scope to net in non-residents operating in preferential tax regimes but is also in line with the implementation of the global minimum tax provisions under Pillar 2 of the BEPs Action Plan.
Enhanced reporting for Multi-national Enterprises
The Income Tax Act currently provides that a reporting Multi-National Enterprise shall provide key financial information concerning each jurisdiction in which the group operates. In addition, the Income Tax (Transfer Pricing), Regulations 2006, impose a requirement to provide transfer-pricing documentation upon request by the Commissioner. Such information usually contains the master and/or local files and other financial reports.
The Act has introduced a requirement to file master and local files annually as opposed to the current request. The master file and local file shall include the following information:
• A detailed overview of the group;
• The group’s growth engines
• A description of the supply chain of the key products and services
• The group’s research and development policy
• A description of each constituent entity’s contribution to value creation
• Information about intangible assets and the group intercompany agreements associated with them
• Information on any transfer of intangible assets within the group during the tax period, including the identity of the constituent entities involved, the countries in which those intangible assets are registered, and the consideration paid as part of the transfer
• Information about financing activities of the group
• The consolidated financial statements of the group
• Tax rulings, if any, made in respect of the group and;
• Any other information that the Commissioner may require.
• Details and information on the resident constituent entity’s activities within the multi-national enterprise group
• Management structure of the resident constituent entity
• Business strategies including structuring, description of the material controlled transactions, the resident constituent entity’s business and competitive environment
• The international transactions and amounts paid to the resident constituent entity or received by the entity and;
• Any other information that the Commissioner may require.
The reporting requirements aim to align Kenya to international standards as outlined in the OECD Transfer Pricing Guidelines, 2022.
Value Added Tax
The Act has introduced a series of amendments in relation to VAT on digital supplies as follows:
Amend the definition of a digital marketplace by deleting the expression “sell or provide services, goods or other property” and substituting it with the words “sell goods or provide services”.
The amendment shall provide clarity on the scope of the tax on digital supplies as it removes the ambiguity created by the broad use of the term other property
Exclude an import of services made over the internet or an electronic network or through a digital marketplace from reverse VAT under Section 10 of the VAT Act.
The exemption from reverse VAT means that all non-resident persons must register and account for VAT irrespective of the recipient of the goods or services.
The Act has amended the VAT Act by excluding persons supplying imported digital services over the internet, an electronic network, or through a digital marketplace from meeting the KES 5 million VAT registration threshold.
The exemption from the registration threshold means that all persons providing digital supplies over a digital market place shall be required to register and account for VAT on the digital supplies regardless of the value of the supplies made to persons located in Kenya.
The amendments took effect on 1st July 2022.
The Finance Act has amended the VAT Act by deleting the provision on exemption of export of service and introducing a provision on zero rating of export of service in respect of business process outsourcing.
This means that any service, which does not fall within the definition of business process outsourcing, shall be subject to VAT at the standard rate of 16%.
The Finance Act does not define what shall be classified as business process outsourcing. We expect that the Kenya Revenue Authority shall release guidelines to this effect.
The amendment took effect on 1st July 2022