The following changes with respect to Employment Income Tax, Corporation Tax, Value Added Tax are now effective.
Employment Income Tax
The following monthly PAYE rates are applicable effective 1st January 2021.
The first 24,000 10%
The next 8,333 25%
All income above 32,333 30%
Personal Relief Kshs 2,400 per month or Kshs 28,800 annually.
The Corporation Tax rate is 30% effective 1st January 2021.
Value Added Tax
The Value Added Tax Rate has been reinstated to 16% effective 1st January 2021.
Minimum Tax has been introduced at the rate of 1% of gross turnover effective 1st January 2021. The Instalment Tax is still applicable and payable by persons whose Instalment Tax payable is higher than the minimum tax. Minimum tax is applicable where a company’s Installment Tax liability is lower than 1% of the company’s gross turnover. The tax shall be payable quarterly by the 20th day of the 4th, 6th, 9th, and 12th month.
Minimum Tax is applicable to all persons except:
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