Income Tax Amendments

1.Digital Content Monetization: New paragraphs added to include creative works, sharing material, and any other non-exempt content.

2.Retirement Funds: Definitions of individual retirement funds, pension funds, and provident funds updated to align with the Retirement Benefits Authority.

3.Removal of Spousal Income Definitions: Various definitions related to a wife’s employment, professional, and self-employment income have been deleted.

4.Related Persons: Revised definition focusing on management, control, or capital participation in business, including familial relationships.

5.Royalty: Expanded to include payments for software and gains from selling property giving rise to royalties.

6.Digital Marketplace: Defined to include ride-hailing, food delivery, freelance, and rental services, among others.

7.Significant Economic Presence Tax: Imposes a tax on non-residents providing digital services in Kenya with certain exemptions.

8.Minimum Top-Up Tax: Introduced to ensure a minimum 15% tax rate for multinational groups operating in Kenya with specific exemptions.

9.Motor Vehicle Tax: Introduced a new tax to be paid upon issuing an insurance cover, with rates based on vehicle value.

Value Added Tax (VAT) AmendmentsTax

1.Invoice: Includes electronic tax invoices.

2.Exported Goods: Time of supply defined by possession of export confirmation documents.

3.Amendments to Schedules: Various deletions and amendments to exempt and taxable goods lists, affecting items like mosquito repellents, tea packaging material, and certain agricultural inputs.

Excise Duty Amendment Digital

1.Services: Excise duty on services offered in Kenya by non-residents through digital platforms.

2.Adjusted Rates: Changes in excise duty rates for items like motorcycles, imported goods, and certain beverages.

3.Miscellaneous Fees and LeviesEco Levy: New eco levy introduced for specified goods, both imported and locally manufactured, to address environmental impacts.

4.Export and Investment Promotion Levy: New rates and goods specified for export and investment promotion levy.These changes are part of Kenya’s ongoing efforts to modernize its tax system, increase revenue, and address the digital economy’s challenges.

The bill’s implementation dates vary, with some sections effective from July 1, 2024, others from September 1, 2024, and January 1, 2025.