The National Assembly on Wednesday evening approved the Tax Laws (Amendment) Bill,2020, which paves the way for 100pc tax relief to employees earning less than Ksh 24,000 to cushion the economy and Kenyans against the effects of the COVID-19 pandemic.
“With regards to Income Tax, the Bill has amended the provisions relating to presumptive tax by increasing the threshold for turnover tax from the proposed Kenya shillings Five Hundred Thousand to Kenya shillings One Million, This will exclude small scale traders from this threshold. The Tumover tax rate has also been amended from three (3pc) percent to one (1pc) percent”
The Bill has also amended the Third Schedule to the Income Tax Act on personal relief and rates Of taxation. Personal relief is now proposed to be increased from sixteen thousand eight hundred and ninety-six shillings to twenty eight thousand eight hundred shillings. Further, the individual rates of tax have been reduced in accordance with corresponding amounts of income, with the effect of reducing the top tax rate to twenty-five percent (25pc).
The law will also provide those earning above that a 5pc tax cut, that is a maximum of 25% down from 30%. The House has also approved the Supplementary budget.
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