The Tax Laws (Amendment) (No.2) Act,2020

The Tax Laws (Amendment) (No.2) Act,2020

We provide in the ensuing pages our analysis of the changes which took effect from 1 January 2021.

1000

Related content

hot_air

As businesses continue adapting to the new operating environment, the Kenyan government is coming to terms with the widening budget deficits due to increased demand for funding for the Covid-19 mitigation measures amid declining tax collections on the back of declining demand, shutdowns of critical sectors such as tourism and reduction in payroll taxes due to layoffs and salary reductions.

Amid these competing needs, on 27 November 2020, the government published The Tax Laws (Amendment) (No.2) Bill 2020 which was later assented to on 23 December 2020 and published on 24 December 2020. The Tax Laws (Amendment) (No.2) Act, 2020 (The Act) has reinstated the tax concessions that the government had provided to mitigate the impact of Covid-19. Critical changes include reinstating corporation tax to 30%, the VAT rate to 16% and the top PAYE band to 30% among other measures.

We provide in the ensuing pages our analysis of the changes which took effect from 1 January 2021.

Read more

© 2021 KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm ofthe KPMG global organization of independent member firms affiliated with KPMG InternationalLimited, a private English company limited by guarantee. All rights reserved. For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today