Kenya Revenue Authority Reveals Kenyans Who Will Be Exempted From Minimum Tax

The Kenya Revenue Authority (KRA) outlined a portion of Kenyans who will be excluded from the minimum tax that came into effect on Friday, January 1.

Those excluded include persons involved in business whose retail price is regulated by the Government and persons involved in insurance business. This is in accordance with the Law on Taxes (Amendment) No 2 of 2020.

The Minimum Tax was initiated under the 2020 Finance Act, whereby Kenyans are required to pay tax whether or not they make profits.

Situations in which people are excluded from the minimum tax include: persons paying income tax on residential rentals where income is subject to employment taxes, persons paying turnover tax and where taxes are due and payable on mining and petroleum activities.

The rate of Minimum Tax is 1 percent of the gross turnover of the company and shall be payable on the 20th day of the 4th, 6th, 9th and 12th months.

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