Business Daily | by Josphat Njuguna
Within nine months (April 2020 – December 2020), Kenya enacted five key tax laws with far-reaching implications for business.
The legislations resulted in considerable changes to the tax base (amount on which tax liability is calculated) and tax rates (the ratio at which a business/person is taxed) for payers in Kenya.
The tax changes were effected on 25th April 2020. It introduced tax reliefs to businesses and individuals in Kenya in the wake of Covid-19 scourge. Key changes included reduction in the corporate income tax (CIT) rate for locally incorporated companies from 30 percent to 25 percent, Value Added Tax (VAT) rate from 16 percent to 14 percent and the top Pay As You Earn (PAYE) rate from 30 percent to 25 percent.
Two months later, the Finance Act, 2020 (Finance Act) was signed into law on…