The Kenyan High Court sitting in Machakos issued an order suspending the implementation of Kenya’s new minimum tax on business gross revenues on April 19 – the day before the first installment of the tax was due.
The suspension is in effect pending the outcome of a hearing on May 19 with respect to cases filed by the Kenya Association of Manufacturers and Isinya Bar Owners Association alleging that the tax is unconstitutional.
The Kenya Revenue Authority, which has agreed to abide by the court’s ruling, successfully sought for the hearing to be held in advance of the next minimum tax installment due date, June 20. The KRA stated that for those that have already paid the first installment of the tax, their payment will be retained as a credit pending the outcome of the hearing.
The minimum tax, which became effective January 1, applies at a one percent rate on a business’s gross revenues, regardless of profit. The tax is due – absent the suspension – in installments on the 20th of April, June, September, and December.
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