Kenya's National Assembly is currently considering the Finance Bill 2020, which was submitted on 5 May 2020. The main tax measures of the Finance Bill include:

• The introduction of a new minimum tax at a rate of 1% on gross turnover that is payable by the 20th day of each period ending on the 4th, 6th, 9th and 12th month of the year of income;
• The introduction of a digital services tax at a rate of 1.5% on the gross transaction value of services provided in Kenya through a digital market place, which will be subject to withholding and, for resident persons and non-resident persons with a PE in Kenya, will be offset against the tax payable for a year of income; and
• The introduction of a voluntary tax disclosure program with effect from 1 January 2021 that provides penalty and interest relief for the disclosure of tax liabilities in the five-year period prior to 1 July 2020, with:
  • Full relief if tax liability paid in the first year of the program
  • 50% relief if tax liability paid in the second year of the program
  • 25% relief if tax liability paid in the final (third) year of the program

Subject to approval, the measures of the Finance Bill 2020 will generally apply from 1 January 2021.