Tax Changes in 2020

The President of Kenya issued a number of relief measures on 25th March 2020 to cushion the tax payers, businesses and investors from the COVID-19 impact.

Below were the changes effected on 1st April, 2020;

INCOME TAX CHANGES

Corporation Tax

Reduction of resident corporation income tax rate from 30% to 25%.

Turnover Tax (TOT)

Reduction of Turnover Tax (TOT) rate from 3% to 1%.

Value Added Tax (VAT)

Reduction of the VAT rate from 16% to 14%.

Pay As You Earn (PAYE)

· 100% tax relief for persons earning a gross monthly income of up to Kshs 24,000.

· Reduction of top Pay-As-You- Earn (PAYE) tax rate from 30% to 25%.