By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Newsunplug KenyaNewsunplug KenyaNewsunplug Kenya
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Reading: Centum RE pays Sh341 million after tax law changes in Uganda
Share
Notification Show More
Font ResizerAa
Newsunplug KenyaNewsunplug Kenya
Font ResizerAa
  • News
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Newsunplug Kenya > Blog > Business > Centum RE pays Sh341 million after tax law changes in Uganda
Business

Centum RE pays Sh341 million after tax law changes in Uganda

hallanaija
Last updated: July 17, 2023 7:51 am
hallanaija
2 years ago
Share
CENTUM
Centum Real Estate Limited managing director Kenneth Mbae.
SHARE

Centum Real Estate paid a Sh341.8 million tax charge in the financial year ended March 2022 after a law change in Uganda reversed a tax credit of Sh113.13 million that the company had enjoyed in the period.

The subsidiary of listed Centum Investment Company was forced to restate its net losses for the period to Sh486.9 million from Sh31.96 million reported previously due to the tax credit reversal on its Uganda investment known as Pearl Marina.

Under Uganda’s income tax laws, businesses are allowed tax deductions against interest costs on the debt incurred towards the generation of income.

Should this interest exceed 30 percent of gross earnings, they are allowed to carry forward the excess to the next financial year towards offsetting tax.

A law change introduced last year, however, capped the carry-forward period at three years, meaning the firm had to make a post-audit adjustment for forfeited interest relating to the 2019 financial year.

“The increase in taxation is because of Pearl Marina which we consolidated into Centum RE. By the close of the 2022 financial year, there was an amendment in Uganda’s tax laws which had not been operationalised. The restated numbers now reflect the impact of the law change,” said Centum RE managing director Kenneth Mbae.

READ MORE  Why Women Are Slow In Climbing Career Ladder
CENTUM
Centum Real Estate Limited managing director Kenneth Mbae.

“The purpose of this adjustment is to account for the forfeited interest which was restricted in the 2019 financial year. Due to the company’s inability to utilise the deduction for this amount in subsequent periods, the forfeited interest is now considered permanent.”

In the 2021 financial year, a tax credit of Sh377.6 million had helped Centum RE post a net profit of Sh650.4 million.

For the year ending March 2023, the company made a net profit of Sh174 million, reversing the restated net loss of Sh486.9 million recorded the year before.

The return to profitability was largely helped by unrealised gains in its real estate assets more than quadrupling to Sh2.1 billion from Sh513 million.

Centum RE attributed the gains to extensive infrastructural investments within its land banks and accelerated development activity by third-party developers.

The company is selling both land and the properties it is developing in Kenya and Uganda.

Its revenue from the sale of residential units rose to Sh1.9 billion in the 12 months to March from Sh1.8 billion the previous year.

READ MORE  The government says it will close 67 businesses in three months.
KenGen will bring 42.5 MW of solar power to the Seven Forks area.
More Medical Kits And Mobile Clinics Has Been Launched In Seven Counties By The First Lady
Naivas founders eye Sh5.8bn as foreigners seize control
KCB seizes second beach hotel over Sh5bn English Point Marina debt
Experts say the budget deficit is expected to exceed Sh600 billion
Share This Article
Facebook Email Print
Previous Article LSK Supreme Court stops LSK from participating in NSSF rates case
Next Article Jetty Uganda moves 27m litres of fuel from Kisumu oil jetty
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

about us

We influence 20 million users and is the number one business and technology news network on the planet.

Recent Posts

  • Former Russian president reminds Trump of Russia’s ‘dead hand’ nuclear strike capability
  • Suspected Arkansas double murd3rer arrested while getting a haircut
  • Paris Jackson and her fiancé end their engagement a week after she was spotted crying in public
  • Singer Justin Timberlake reveals Lyme disease diagnosis
  • Kenya Power warns public against conmen posing as CEO Siror

Recent Comments

No comments to show.
Newsunplug KenyaNewsunplug Kenya
© Newsunplug Kenya. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?