Last week the President of Kenya assented to the Tax Laws (Amendment) Bill, 2020. It has amended tax-related laws in Kenya including the Income Tax Act (CAP 470), the Value Added Tax Act of 2013, the Excise Duty Act (2015), the Tax Procedures Act (2015), Miscellaneous Levies and Fees Act (2016) and the Retirement Benefits Act(1997)
Some highlights of the amendments include:
1. The threshold for applicability of turnover tax has been raised to between one million and fifty million shillings. It further lowers turnover tax rate from 3 to 1 percent.Small scale traders will definitely benefit from this as they will now be excluded from presumptive tax.

2.Employees earning below Kshs. 28,000/= per month) are also going to benefit from the a 100 percent Pay As You Earn (PAYE) tax relief.
There is also relief for employees earning more than Kshs. 28,000/= as they will benefit from a PAYE tax reduction of between 30 and 25 percent.

3. The new Act has revised Corporation Tax to 25 percent while Non-Resident Tax on Dividends has been adjusted from 10 to 15 percent.

4. The new Act, has amended Section 38 of the Retirement Benefits Act (1997) to allow persons to access their retirement benefits for purposes of purchasing a residential house.