The Finance Act 2020 minimum tax kenya 2020/2021

Treasury introduces 1 Percent minimum tax to all business and 1.5 Percent to all digital platform businesses including Blogs, Podcasts and other online content providers.


The Finance Act 2020 introduced a tax known as minimum tax under the ITA, effective 1st January 2021 which, will be payable at a rate of 1% of the gross turnover.


Speaking on business now with Citizen TV presenter Yvonne Okwara, several economists talked about the raised taxes in 2021.

Victor Otieno, Vifa Consult said, " 3 out of 5 businesses die in the first three years, businesses need more time to recover before the introduction of additional tax. "

Carole Karuga, CEO, KEPSA said, " Private sector is looking at a better way for business after a gruesome 2020 for some form of cautious recovery. Even with the reversal of tax benefits, we hope there will still be a cushioning of private sectors."

"We wish the Government could delay the minimum tax, the timing is not right as majority businesses have been hard hit by COVID-19. Delay for about six months would be ideal, " she added.

Sekar Ramamoorthy, MD, PZ Cussons, East Africa said, " Kenya has managed COVID-19 crisis far better than other economies in Kenya. We expect 2021 to be a rough year though it has started slowly because of the country’s debt and weak state of the Kenya shilling."

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