Employees will contribute up to Sh4,320 monthly, up from Sh2,160, with employers matching the amounts.More details below:The adjustment will see the lower income limit rise to Sh8,000 (from Sh7,000) and the upper income limit to Sh72,000 (from Sh36,000).—Minimum contribution: Sh480 (from Sh420)—Maximum contribution: Sh3,840 (from Sh2,160)—Employees earning Sh50,000 will contribute [...]
Read MoreThe Kenya Revenue Authority (KRA) announces that the Tax Procedures (Amendment) Act, 2024, has introduced a tax amnesty program waiving interest, penalties, and fines on tax debts for periods up to December 31, 2023. This program will be available from December 27, 2024, to June 30, 2025. The tax amnesty [...]
Read More
Multinational tech companies have also announced that they will begin applying a standard 16% Value Added Tax [VAT] on electronically supplied services such as streaming movies on Netflix or listening to music on Spotify , as the government looks to tap into the growing digital market in the country.
First among the taxes is the 20% Excise Tax on transactions between mobile wallets and banks. Banks have already started charging the tax in addition to the reintroduction of fees on mobile-to-bank transactions and vice versa.
The Kenya revenue Authority [KRA] has appealed to the supreme court to overturn a lower court ruling that blocked the implementation of a mandatory 1% gross turnover minimum tax. The minimum tax is a flat tax that applies to companies that have a turnover of less than sh5 million per year.