The Tax Laws Amendment No 2 Act No 22of 2020 - as Plain Text by MWakili

NATIONAL COUNCIL FOR LAW REPORTING LIBRARY SPECIAL ISSUE Kenya Gazette Supplement No.

235 (Acts No.

22) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT ACTS, 2020 NAIROBI, 24th December, 2020 CONTENT Act PAGE The Tax Laws (Amendment) (No.

2) Act, 2020 259 PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI 259 THE TAX LAWS (AMENDMENT) (NO.

2) ACT No.

22 of 2020 Date of Assent: 23rd December, 2020 Date of Commencement: See Section 1 AN ACT of Parliament to make amendments to tax- related laws by the Parliament of Kenya, as follows- ENACTED This Act may be cited as the Tax Laws Short title and 1.

commencement.

(Amendment) (No.

2) Act, 2020 and shall come into force on the 1st January, 2021.

2.

The several laws specified in the first column of the Schedule are amended in the provisions specified in the second column thereof, in the manner specified in the third column.

SCHEDULE Amendment Written Law Provision The Income s.12D (1) (c) Delete the word "higher" and Tax Act substitute therefor the word "lower".

(Cap.

470) s.12 D (1) Insert the following new paragraphs immediately after paragraph (c) that person is not engaged (d) in business whose retail price is controlled by the Government; (e) that person is not engaged in insurance business.

Third Delete item 1 and 1A of Schedule Head B (Rates of Tax) and Head B substitute therefor the following new items 260 No.

22 Tax Laws (Amendment) (No.

2) 2020 1.

The individual rates of tax shall be Rate in each shilling On the first KSh.

10% 288,000 On the next KSh.

25% 100,000 Above KSh.

30% 388,000 1A.

The wife's employment, wife's professional and wife's self-employment income rates of tax shall be Rate in each shilling On the first KSh.

10% 288,000 On the next KSh.

25% 100,000 Above KSh.

30% 388,000 Item 2 (a) Insert the following sub- paragraph immediately after item (viii) (ix) For the year of KSh.

6.00 income 2021 and each subsequent year of income.

Provided that this provision shall apply to the income earned from the 1st January, 2021.

Item 5 (d) Delete the tabulation of rates and (i) income bands and substitute therefor the following new rates and income bands 261 2020 Tax Laws (Amendment) (No.

2) No.

22 Rate in each shilling On the first KSh.

400,000 10% On the next KSh.

400,000 15% On the next KSh.

400,000 20% On the next KSh.

400,000 25% On all income above 30% KSh.

1,600,000 of the amounts in excess of the tax-free amount.

Item 5 (d) Delete the tabulation of rates and income bands and substitute therefore the following new rates and income bands Rate in each shilling On the first KSh.

10% 288,000 On the next KSh.

25% 100,000 Above KSh.

388,000 30% Item 5 (d) Delete the words "twenty- (iii) five percent" and substitute therefor the words "thirty per cent".

The Value Addeds.17 Insert the following new Tax Act, 2013 subsection immediately after (No.

35 of 2013) subsection (7) (8) Notwithstanding the provisions of this section, a registered person who is a manufacturer may make a deduction for input tax with respect to taxable supplies made to an official aid 262 N0.

22 Tax Laws (Amendment) (No.

2) 2020 funded project as may be approved by the Cabinet Secretary in accordance with the First Schedule.

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