More insights on Finance Act 2020

1. Finance Act Content

2. Residential Rental Income Tax
The Residential Rental Income Tax has been
amended, the upper threshold has been increased
from Kshs 10million to Kshs 15million.
The lower threshold has been increased from Kshs
144,000 to Kshs 288,000 per annum in order to align
with the current lower individual tax band.

3. Digital Tax- Thread
Digital Tax Service (DST) is payable by a person
whose income is derived through a digital market
place.
The rate of tax is 1.5% of the gross transaction value.
DST is due at the time of transfer of payment for the
service to the service provider.
DST is not a final tax, Residents and non-residents
with a permanent establishment are entitled to
offset the digital service tax against their income tax
payable for that year of income.

4. Income Tax Exemptions
Income of a registered home ownership savings
plan (HOSP) and Income from employment paid
in the form of bonuses, overtime and retirement
benefits to employees whose taxable income does
not exceed the lowest tax band have been deleted
from income tax exemptions.

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