Kenya High Court reaffirms the applicability of withholding tax on interest-free loans
|Tax Alerts, Information Reporting, Legis ...|Kenya
The Appellant challenged the Tax Appeals Tribunal's decision that had set aside a withholding tax assessment on the basis that certain debts did not qualify as "loans" under the Income Tax Act.
The High Court held that the absence of a fixed charge, interest, discount or premium does not exclude the Respondent's debts from being classified as loans.
The Court held that withholding tax applies to any indebtedness to a nonresident entity, regardless of whether interest is payable.
Executive su…
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