On 12 April 2022, the Finance Bill 2022 was presented in the National Assembly of Kenya, which provides following tax measures related to corporate taxation.
- Corporations donating money to non-profit organizations can deduct the donation from their taxable income instead of only donating to non-profit organizations registered under the Societies Act or the Non-Governmental Organizations Coordination Act.
- Exclusion of microfinance institutions licensed under the Microfinance Act from the new 30% EBITDA interest deduction limit introduced in 2021.
- Proposal to change the KRA from the Kenya Revenue Authority to the Kenya Revenue Service.
- Introduce a 15% excise tax on fees charged by TV stations, print media, billboards and radio stations, advertisements for alcoholic beverages, gambling and gambling.
- The budget proposes to increase the digital service tax rate from 1.5% to 3% of the gross transaction value.
- The budget proposes to increase the rate of CGT from 5% to 15%.
The proposals would come into effect on 1 July 2022.
