25/03/2020
Tax Highlights of today's HISTORICAL speech
I. 100 % Tax Relief for persons earning gross monthly income of up to Ksh. 24,000.
II. Reduction of Income Tax Rate (PayAs-You-Earn) from 30% to 25%. Page 10 of 31
III. Reduction of Resident Income Tax (Corporation Tax) from 30% to 25%;
IV. Reduction of the turnover tax rate from the current 3% to 1% for all Micro, Small and Medium Enterprises (MSMEs);
The National Treasury shall cause immediate reduction of the VAT from 16% to 14%, effective 1st April,2020;
That the Kenya Revenue Authority shall expedite the payment of all verified VAT refund claims amounting to Ksh. 10 Billion within 3 weeks; or in the alternative, allow for offsetting of Withholding VAT, in order to improve cash flows for businesses.