Kenya: Tax proposals in Finance Bill, 2024 include implementation of Pillar Two global minimum tax
Changes to tax framework
Changes to tax framework
The Finance Bill, 2024 proposes significant changes to the tax framework. These proposals include:
- Introducing a motor vehicle tax set at 2.5% of the vehicle's value
- Extending the time frame for the Kenya Revenue Authority to issue decisions from 60 to 90 days
- Increasing the value added tax (VAT) registration threshold for taxpayers making taxable supplies from KES 5 million to KES 8 million
- Implementing a minimum top-up tax of 15% for resident persons or entities with a permanent establishment in Kenya that are part of a multinational group with a consolidated annual turnover of €750 million in at least two of the previous four years
Read a May 2024 report (75 pages) prepared by the KPMG member firm in Kenya that provides an analysis of tax proposals covering:
- Income tax – corporation tax
- Pay as you earn
- VAT
- Tax Procedures Act
- Excise duty
- Miscellaneous Fees & Levies Act
- Other acts
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