This is not tenable in the current environment. Taxpayers are supposed to submit documents and in some instances appear in person at our premises. KRA appreciates that taxpayers are required to provide proof of transaction in response to VAT inconsistency reports. In the event that a taxpayer is not able to honour the agreed payment plan, it’s mandatory that the same is reviewed and agreed with our debt team. KRA will decisively handle any matter that pertains to deliberate non-payment of taxes. On its part, KRA will continue supporting individuals and businesses in accessing our services to ensure all taxes are paid in a timely manner at this critical time. Taxpayers are required to determine correctly their tax liability and remit the same in a timely manner. Therefore, we are encouraging all taxpayers to continue paying all taxes due to support the Government in provision of critical services. Setting up a fund to which players in the Public and Private Sector are contributing in support of Government effortsĪs the Country faces this global health challenge, all citizens are called upon to play their part.Facilitating expedited payment of VAT Refunds by allocating an additional Ksh.Central Bank of Kenya to offer flexibility to banks on loans that were active as of March 2020 to maintain liquidity levels.Lowering of Cash Reserve Ration (CRR) to 4.2%.Lowering of Central Bank Rate (CBR) to 7.2%.Suspension of all listing for all persons including companies at Credit Reference Bureau (CRB).Immediate reduction of VAT rate from 16% to 14%įurther to this, the Government has implemented the following measures:.Reduction of Turnover Tax rate for SMEs from 3% to 1%.Reduction of Resident Corporate Income Tax rate from 30% to 25%.100 % Tax Relief for persons earning up to Ksh.Reduction of Personal Income Tax top rate (PAYE) from 30% to 25%.To mitigate the effects of COVID – 19 to the Kenyan economy, the Government has proposed various measures including the following: We significantly fund our national budget though Taxes.

Taxes play a fundamental role in Kenya’s sovereignty. KRA New PAYE and VAT Rates in response to COVID-19

2020 tax brackets