MGI Alekim LLP-income-tax

As per the Tax Laws (Amendment), No.2 Act of 2020 published on 24th December, 2020, individual tax rates shall change as follows effective 1st January 2021.

Monthly Income (Ksh) Annual Income (Ksh) Rate
On the first 24,000 288,000 10%
On the next 8,333 100,000 25%
Income in excess of 32,333 388,000 30%

Monthly relief shall remain Ksh 2,400 monthly and Ksh 28,800 annually.

The first return under the new rate is due by 9th February 2021.

Corporation Tax

The rate of corporation tax is 30% of taxable income with effect from 1st January 2021.

WEAR AND TEAR DEDUCTIONS

The wear and tear deduction on Plant and Machinery rates for class A to class D has changed as follows

CLASS CLASS B CLASS C CLASS D
Rate 25% 10% 10% 10%
  • Class A – includes heavy earth moving equipment and self-propelling vehicles e.g. Lorries above 3 tonnes, forklifts, trucks. The rate is 25 % p.a.
  • Class B – computers, photocopiers, scanners. The rate is 10%
  • Class C – includes light self-propelling vehicles and other machines such as aircraft, motorbikes, Lorries under 3 tonnes. The rate is 10%.
  • Class D – e.g telephone sets, switchboards, bicycles. The rate is 10%.

 

VAT

The rate of Value Added Tax is 16% effective 1st January 2021.

The first return under the new rate is due by 20th February 2021.

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