Global Daily Tax News, Kenya Includes Tax Hikes In New 2024 Finance Bill, (May 15, 2024)

Kenya has released the 2024 Finance Bill, including a swathe of changes to the country's tax regime.

The Bill provides for the introduction of a Pillar Two minimum top-up tax on large multinational enterprises, to ensure that they pay an effective corporate tax rate of at least 15 percent.

Further, the Bill provides for a 15-percent waiver of affordable housing levy for employees, capped at KES108,000 (USD824.50) per year.

A new 20 percent tax will be introduced on non-resident taxpayers rendering services to Kenyan recipients through a digital marketplace, to be known as the significant economic presence tax. A return will be required and any tax due by the 20th day of the month following the month in which the service was rendered.

Further, the Bill provides that residents will be liable to tax on income from infrastructure bonds.

A new motor vehicle tax will be introduced that will be collected and remitted by providers of insurance cover.

Another notable provision in the Bill provides for an increase to the value-added tax registration threshold to KES8m, up from KES5m.