Income Tax Act (cap 470)

: ^KENYA

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Chapter 15

Turnover Tax (s.12(C)

• First introduced through Finance Act 2006.


• Became effective from 1st January 2007.


• Mainly aimed at expanding the tax base to small businesses.

1. Turnover Tax Timeline

Effective Date	Act	Details	Return Period
2007	FA 2006	ToT 3% of turnover introduced	Quartely by the 20th of month after quarter
2018	FA 2017	ToT abolished PIT of 15% of SBP introduced	PIT due at time SBP is due
2020	FA 2019	ToT of 3% of Turnover reintroduced PIT at 15% of Single Business Permit (SBP)	Monthly by the 20th
2020	Tax Laws Amendment Act 2020 (TLA-1)	ToT adjusted to 1% of Turnover Repeal of Presumptive Income Tax (PIT)	Monthly by the 20th





2. Those Affected By ToT



• FA 2006 those with annual turnover of more than Kshs.1m > and less than Kshs.5m. FA 2006
• TLA-1 2020 increased the maximum to less than Kshs.50m. FA 2020

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