Loan/credit facilities come in handy with the need for that extra cash. Some employers offer loans/credits to their employees at interest rates lower than the market rate. This is an employment benefit to the employee(s) which is subject to a […]

The VAT (Electronic Tax Invoice) Regulations, 2020 The KRA has given firms until August 2022 to install new electronic tax registers connected to its systems for monitoring daily sales on real time basis. This will curb Tax Cheats especially coming […]

What is Minimum Tax Minimum Tax is a base income tax payable of all persons regardless of whether or not they are making a profit. Applicable rate of tax The rate shall be 1% of gross turnover as provided under […]

DIGITAL SERVICE TAX (DST) 1. What is Digital Service Tax (DST)? Digital Service Tax (DST) is payable on income derived or accrued in Kenya from services offered through a digital marketplace. 2. What is a Digital Market Place? A digital […]

1. OLD TURNOVER TAX The turnover tax was introduced in Kenya in 2007 (w.e.f. 1st January 2008) to enhance revenue collection, improve tax administration and reduce compliance and collection costs. Turnover Tax was introduced by the Finance Act 2007 through […]

VOLUNTARY DISCLOSURE PROGRAMME The Tax Procedures Act, 2015 has introduced a Voluntary Disclosure Programme (VDP), where a taxpayer discloses tax liability that was previously undisclosed for the purpose of being granted relief of penalties and interest on the tax disclosed.  […]

Digital Service tax On 30th June 2020, President Uhuru Kenyatta approved the Finance Act, 2020.  The Act introduced a Digital Service Tax at a rate of 1.5% of the gross transaction value and shall be payable by a person whose income from […]

INCREASE IN MONTHLY RESIDENTIAL RENTAL INCOME TAX (MRI) THRESHOLD The Finance Act 2015 introduced a new Section 6A in the Income Tax Act Cap 470 Laws of Kenya, which provided for a simplified tax regime on residential rental income as […]