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