The Kenya Revenue Authority (KRA) has waived presumptive tax for new businesses in their first 24 months of operations as part of measures to simplify tax payments ease business costs. The tax is however offset against the turnover tax payable which is presently calculated at one percent of the businesses yearly sales. This means that businesses have from this year recovered the presumptive tax paid as it is deducted from turnover tax due. The 2020 Tax (Ammendments) Act lowered the effective turnover tax rate from three to one percent effective in April lowering the overall tax paid by SMEs in the country. In his address to the nation at the end of September, President Uhuru Kenyatta recommended a hold of the turnover tax (ToT) beyond December 31 as he proposed the return of previous tax rates including PAYE and corporation tax from January 1, 2021.

Source: Daily Nation October 21, 2020 13:52 UTC