On 27 November 2020, the National Treasury has published the Tax Laws (Amendment) (No.2) Bill, 2020 (“the Bill”) in the Kenya Gazette Supplement No.216 (National Assembly Bills No.48).
The law seeks to reverse the major tax concessions introduced in April 2020. The Bill is currently undergoing public participation and is expected to come into force on 1st January 2021. The Bill proposes to amend the Income Tax Act by: a) Reinstating the resident corporate tax rate of 30% with effect from 1st January 2021; and b) Introducing a proviso, which states that the reduced corporate tax rate of 25% introduced in April 2020 only applies to income earned after 25th April 2020.
