Income Tax Act(cap 470)

: ^KENYA

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Chapter 16

Minimum Tax - (SUSPENDED) (s.12(D)

• Introduced through the Finance Act no.8 of 2020.


• The rate is at 1% of turnover.Third Schedule)


• Payable in instalments based on instalment tax timelines.

Exemptions From Minimum Tax (MnT) (FA 2020)

• Where instalent taxes are higher than Minimum Tax.


• Income subject to Residential rental income Tax (RRIT).


• Income subject to Capital Gains Tax (CGT).


• Employment income (s.5 cap 470).

Additional Exemptions From Minimum Tax (MnT) (FA 2021)

• Dealing with commodities where price is under government control.


• Insurance business.


• Cummulative investments of over Kshs.10b in manufacturing


• Licenced Special Economic Zones.


• Commission based businesses.

Minimum Tax - SUSPENDED BY THE COURTS (s.12(D)

• Ruled to be unconstitutional by both the High Court and Court of Appeal.


• KRA has moved to the Supreme Court.

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