On 14 June 2022, the Finance Minister presents the Budget for 2022/23 to the National Assembly. This Budget highlights presents a summary of the tax and related regulatory changes. The Budget Bill is now subject to the President’s sign to become a law. The income tax measures of the Budget include:
- Introduce Digital Service Tax at the rate of 2% on the turnover of the non-resident service providers;
- Reduce Withholding Tax on film industry from 15% to 10%;
- Exempt withholding tax on Coupon for Corporate and Municipal Bond;
- Exempt Capital Gain Tax (CGT) on equity shares freely surrendered to the Government through the Treasury Registrar;
- Exempt Capital Gain Tax on any transactions involved on the entry into force and implementation of Agreements involving the transfer or surrender to the Joint Venture Company of any project or the authorization, issue, distribution or transfer to the Government of the Free Carried Interest shares;
- Introduce final Withholding Tax at a rate of 2% of payments made to Small Scale Miners;
- Introduce income tax of 3,500,000 shilling on each truck and passenger bus per year; and
- Introduce an advance income tax at the rate of 20 shilling per litre for retailers of petroleum products.
