Revised in 2021
The Income Tax ActThe Income Tax Act (Cap 470) of Kenya, revised in 2021, provides the legal framework for the assessment, collection, and administration of income tax in the country. It governs the taxation of individuals, businesses, and other entities, ensuring compliance and contributing to national revenue.
The Act outlinesThe Act outlines the rules for determining taxable income, tax rates, and allowable deductions for various income sources, including employment, business profits, rental income, and investment returns. It also provides guidelines on tax exemptions, tax credits, and reliefs, aiming to encourage savings, investments, and economic growth.
The primary objective of the Income Tax Act is to ensure an equitable and efficient tax system that supports government funding for public services and infrastructure. It aims to create a balanced tax regime that fosters economic development while minimizing tax evasion and avoidance.
The 2021 The 2021 revision of the Act introduced changes to accommodate emerging economic trends, such as digital transactions and cross-border trade. It includes new provisions for taxing digital services and adjusting personal and corporate tax rates, aligning Kenya's tax policy with global practices and enhancing revenue collection.
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