Kenya: Tax rates reduced in response to pandemic to be reinstated (COVID-19)
Kenya: Tax rates reduced in response to pandemic
Legislation—The Tax Laws (Amendment) (No.2) Bill 2020—reflects the government’s intention to reinstate (or return to) tax rates that had been reduced as relief measures to mitigate the economic effects of the coronavirus (COVID-19) pandemic.
There are measures in the legislation to reinstate the corporation tax rate to 30% for 2021 as well as to return the 30% tax rate for individual taxpayers. The 25% corporation tax rate would apply to income earned from 25 April 2020.
The government also intends to return the standard rate of value added tax (VAT) to its pre-COVID-19 rate of 16% (from 14%) effective 1 January 2021.
Read a December 2020 report [PDF 351 KB] prepared by the KPMG member firm in Kenya
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