This law introduced amendments to the Income Tax Act, Value Added Tax Act, 2013, Excise Duty Act, 2015, Tax Procedure Act, 2015, Miscellaneous Fee and Levies Act, 2016, Kenya Revenue Authority Act, 1995 and the Retirement Benefits Act, 1997. However, it seems there are varied views concerning the effective date of the law, affecting the reduced Pay-As-You-Earn (PAYE), and corporation tax rates. Section 34(1)(a) of the Income Tax Act provides that the total income of an individual shall be charged for a year of income at the individual rates for that year of income. Like PAYE, corporation tax for resident entities under the new law enjoys a reduced tax rate of 25 per cent. This would be as a result of instalment tax paid during the year, based on a higher tax rate of 30 per cent.

Source: Standard Digital June 09, 2020 06:06 UTC