FILE PHOTO | NMG
Stockbrokers have started charging the 14 percent value-added tax (VAT) on service fees and commissions after President Uhuru Kenyatta assented to the Tax Laws Amendment Act 2020 last month, raising the cost of investing in equities and securities at the NSE.
Dyer Blair Investment Bank and ApexAfrica Capital have sent notices to clients informing them of the different fees and commissions that will be loaded with VAT.
"Going forward, for the purchase of shares the amount will include the purchase price, brokerage commissions, statutory levies plus VAT.
As for the sale of shares, the proceeds will be paid net of brokerage commissions, statutory levies plus VAT," said ApexAfrica in their notice.
The VAT applies on a wide range of brokerage fees, including commissions on equities and bonds trades, fees on share immobilisation and pledges, private transfers, transmissions in and transfers out.
