Kenya: Guidance on minimum tax

Kenya: Guidance on minimum tax

The Kenya Revenue Authority updated guidance in an effort to clarify the rules for implementing the minimum tax.


The Finance Act, 2020 introduced the minimum tax, effective 1 January 2021. The minimum tax (imposed a rate of 1% of gross turnover) is payable when the amount of a taxpayer’s instalment tax payable is less than the amount of the minimum tax. 

In early 2021, the tax authority issued guidelines about the minimum tax. Read TaxNewsFlash

The updated guidelines reflect:

  • Changes to the definition of gross turnover
  • Clarity on transition for persons with an accounting period ending on a date other than 31 December
  • Address the computation of minimum tax for partnerships

Read a March 2021 report prepared by the KPMG member firm in Kenya

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