Section 15(7) of the Income Tax Act Cap. 470 requires that a person who derives income from one or more specified sources will submit a separate account and a separate computation in respect of each specified source.
In line with section 64(1) of the Tax Procedures Act, KRA informs the public of the withdrawal of the waiver of this requirement granted through a letter dated 7th February 1979 addressed to Institute of Certified Public Accountants (ICPAK), with effect from 1st October 2021. Henceforth, all taxpayers will be required to prepare a separate account in respect of each specified source of income and in the event of a loss, that loss may only be deducted from gains or profits of that person derived from the specified source in the following year or subsequent years of income in so far as the loss has not already been deducted.
Commissioner for Domestic Taxes