The Finance Act 2020 introduce a few taxes and below are some of them.
(a) Digital Services Tax (DST) This tax shall be payable on income which is deemed to be derived or accrued in Kenya from the provision of services through a digital market place.
The Income Tax Act defines a digital market place as a platform that enables the interaction between buyers and sellers of goods and services through electronic means.
DST shall be computed at the rate of 1.5% of the gross transaction value and is payable when transferring payment to the service providers. This tax is to be treated as an advance tax available for set off against the tax payable for the year of income.
(b) Minimum Tax. The act introduced minimum tax which shall be payable by a person if the person's; - Income is not exempt under the ITA(Income Tax Act) - Income is not from employment, residential rent, capital gains, mining or oil exploration or subject to turnover tax or. - Installment tax payable is higher than the minimum tax payable.
Minimum tax is based on 1% of gross income and paid on the 20th day of the 4th, 6th,9th and 12th months.
This tax is a move to tax businesses that are in a loss making positions.
NB: The implementation of the a bove taxes shall commence on 1st January 2020