| 1. New PAYE Rates | ||
| From | To | Rate |
| 0 | 24,000.00 | 10% |
| 24,000.00 | 40,666.67 | 15% |
| 40,666.67 | 57,333.33 | 20% |
| 57,333.33 | ∞ | 25% |
| Personal Relief | Kshs 2,400 |
The Corporate Rates of Tax
(a) in the case of a resident company 25% (b) a non-resident company having a permanent establishment in Kenya remains 37.5% (c) a company engaged in business under a special operating framework arrangement with the Government, the rate of tax specified in the Agreement shall continue to apply for the unexpired period.
Turnover Tax
Incorporated companies now included in the turnover tax, in addition to sole traders and partnerships. Those eligible shall have an annual business turnover that is more than Kshs 1 million but not exceed or is not expected to exceed Kshs 50 million. Anyone earning rental income or management or professional or training fees are not eligible to turnover tax. To opt-out of turnover tax – in writing to the commissioner- should be done immediately. Tax rate reduced from 3% to 1%. Presumptive tax abolished for tax audit kindly consult http://ernestandmartin.com/
A payment in respect of disturbance, not exceeding three months’ salary, made in connection with a change in the constitution of the government of a Partner State or the Community to a person who, before the change, was employed in the public service of any of those governments or of the Community.
The income received by way of remuneration under a contract which was entered into consequent upon financial assistance being received from the International Co-operation Administration for the enterprise in respect of which the contract was entered into and which provides that income shall be exempt from tax.
Taxable value in respect of fuels now to include excise duty, fees, and other charges with effect from the 15th May 2020.
Goods for direct and exclusive use in the implementation of projects under special operating framework arrangements with the Government has been removed from the exempted excisable list. personal motor vehicle, imported by a public officer or her spouse returning from a posting in a Kenyan mission abroad has also been removed from the exempted excisable list.