Tax Laws (Amendment) Act, 2024

The Tax Laws (Amendment) Act , 2024 (the Act) follows the rejection of the Finance Bill, 2024 and presents another opportunity for the Government to revisit some of the provisions that it had proposed in the Finance Bill, 2024 that the public rejected.

While the Finance Bill, 2024, sought to introduce significant changes, the lack of assent underscored the need for further review and dialogue. In response, the Act has dropped some of the earlier provisions, reinstated some of the provisions contained in the Finance Bill, 2024 and introduced new provisions. With these provisions, the government is aiming at expanding the tax base and addressing tax challenges posed by the evolving global economic landscape.

Among the changes contained in the Act is the introduction of Significant Economic Presence (SEP) Tax which replaces the Digital Service Tax (DST). SEP tax is set to change the business landscape for non-residents who carry on businesses over digital marketplaces and is aligned to the globally driven Two Pillar Approach to the taxation of the digital economy.

On VAT, the Act has introduced several changes to the First Schedule of the VAT Act. Notable is the exemption of agricultural pest control products and fertilizers which are currently zero rated. 

Click the download button below to read more on the key provisions covered under the Act.