In this webinar we looked at minimum tax in Kenya which came into effect from 1 January 2021. The tax has caused a significant uproar from the business community. The reason for the uproar is that the tax is aimed at taxing loss making businesses operating in Kenya. Moreover, the outworking of the tax results into businesses with lower profit margins paying higher tax than businesses with higher profit margins.
Minimum tax violates several canons of taxation. These include, ability to pay, equality, and certainty. It is an important tax to consider for businesses operating in Kenya or looking to come into Kenya.
In the webinar discussion we consider the following points:
- When was the tax introduced?
- Who is the target?
- How does it apply?
- What is the rationale for the tax?
- Where is the Government of Kenya coming from?
- Recourse available for businesses
Of note, the Kenya Association of Manufacturers is threatening taking the matter to court if their lobbying efforts do not succeed.
Read more on minimum tax
Please note that this discussion happened before the minimum tax guidelines were published. The guidelines clarify some application issues raised in the discussion.
Also please find the document summarizing the discussion points presented in the webinar here.
Links to the webinar recording
Find the webinar recording on our YouTube Channel – https://youtu.be/7IxGsGQVfPQ
Also find the podcast version of the discussion at – https://anchor.fm/54ishare
