Kenya is among tax jurisdictions in the world that operate a self-assessment tax regime. One such measure that might work perfectly well is the minimum tax. The minimum tax is among tax provisions in the Finance Act 2020 that took effect on January 1, 2021 and will be charged at the rate of one per cent of the gross turnover. According to the Finance Act 2020, the minimum tax will only be payable where it exceeds the instalment tax payable to the taxman. By sealing this loophole, the minimum tax will ensure a level field for all players.

Source: The Star January 06, 2021 01:52 UTC