Kenyan Government response to COVID-19

1. Reduction of the resident corporate tax rate from 30% to 25%

2. Appropriation of KES 10 Billion through cash transfers to the elderly, orphans and other vulnerable members of society;

3.Reduction of the turnover tax rate from 3% to 1%.

4. Reduction of the Value Added Tax rate from 16% to 14%

Taxpayers could, in addition, to the proposed measures also consider the following measures,

A. Application for extension of time to file returns in case they anticipate to file the returns late

B. Application for a tax payment plan, where tax may be paid by way of installments. In case of penalties and interest for late payment, taxpayers may apply for a waiver of the same.

C. Applying for exemption from the withholding VAT regime in the case where the taxpayer anticipates to be in a VAT credit position for 24 months or more;

D. Utilizing credits arising from withholding VAT to offset other tax liabilities.