National Treasury Gazettes Exemption of Kenya Airways from 1% Minimum Tax

The National Treasury has gazetted the exemption of cash strapped Kenya Airways from the minimum tax at a rate of 1 per cent of their turnover.

Through a Kenya Gazette notice dated March 17, 2021, National Treasury Secretary Ukur Yatani said: “In exercise of the powers confirmed by section 13(2) of the Income Tax Act the CS for National Treasury and Planning directs that the income derived from or accrued in Kenya by an airline in which the government of Kenya owns at least 45 per cent of its shares, and the subsidiaries of that airline shall be exempted from the provisions of Section 12(d) of the Act.” 

The minimum tax was introduced in the Finance Bill 2020.

 “The intention of this is to bring on board companies who earn income from Kenya, but end up declaring losses perpetually to avoid payment of corporate taxes,” Yatani explained.