On 9 September 2019, the Minister of Finance, Economic Planning and Development has published the Budget for 2019-2020 to the parliament. On 10 October 2019 Parliament has approved the K1.7 trillion 2019/20 national budget.
Corporate tax measures:
- The introduction of a 50% deductible allowance for all employers recruiting people with disabilities, with the allowance based on the basic salary of the employed persons;
- Removing withholding tax on tobacco sales for the first 1,200 kilograms or 10 bales of tobacco sold through auction floors;
- Increasing withholding tax rate on rental income from 15% to 20%;
- Increasing the withholding tax rate on technical (professional) fees from 10% to 20%; and
- Introducing a 1% final withholding tax rate on non-bank mobile money transactions.
Individual tax measures:
Increasing the Pay As You Earn (PAYE) tax free bracket to K 45,000 from K 35,000 per month in order to take into account the cost of living and increase disposable personal income. Accordingly, the minimum wage has been increased to K1346.15 per day from K962 per day.
