\u201cThe Finance Act 2025, assented into law on 26th June 2025, introduces a new paragraph under Section 35(1)(u) of the Income Tax Act (Cap 470), which states: <\/p>\n\n\n\n
“(u) gains or profits which are chargeable to tax under section 9(1) derived from the business of a ship owner or charterer\u201d<\/strong><\/p>\n\n\n\n This amendment brings shipping income earned by non-resident shipping companies from cargo or passengers embarked in Kenya into the withholding tax (WHT) regime, thereby placing a WHT obligation on Kenyan customers<\/strong> making freight (shipping) payments for exports from Kenya and Detention and Demurrage (DnD) charges<\/strong> to such non-resident shipping companies\u201d<\/p>\n\n\n\n Effective immediately, a Withholding Tax of 2.5% <\/strong>is applicable on demurrage fees payable to our company. In line with this requirement, we kindly request:- We appreciate your cooperation and continued partnership. Should you require any clarification or a detailed guideline, please do not hesitate to contact our finance team on finance@blue-funnel.com<\/strong><\/p>\n\n\n\n Thank you.
\u2022Customers to withhold tax when making payments to EMIRATES SHIPPING LINE<\/strong>, irrespective of the bank account used; and
\u2022No WHT should be withheld against Blue Funnel Ltd<\/strong>, as it is not the recipient of the shipping income nor the service provider.
Attach a copy of the Withholding Tax Certificate<\/strong> issued by KRA for the amount deducted and the net payment (demurrage amount less WHT) should then be remitted to our local bank account as usual.<\/p>\n\n\n\n
Management.
Blue Funnel Limited.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-8966","advisories","type-advisories","status-publish","hentry","advisories-tag-advisory","advisories-tag-kenya"],"acf":[],"yoast_head":"\n