Kenya Revenue Authority (KRA) recently unveiled new Pay As You Earn (PAYE) tax rates following the lifting of the suspension on the Finance Act 2023. The revised rates, which have been in effect since July 1, apply to employees earning over Sh500,000.
Notably, there is a significant increase in taxes for those falling into different income brackets. Individuals earning between Sh500,000 and Sh800,000 now face a 32.5 percent tax rate, while those earning above Sh800,000 will be taxed at a rate of 35 percent.
To comply with the revised tax rates, affected individuals are urged to promptly download the updated P 10 forms from the Kenya Revenue Authority (KRA).
In addition to high-earning professionals, small businesses are also feeling the impact of the Finance Act, as the turnover tax hike came into effect on the same date. This development has triggered discussions on the wider implications for the entrepreneurial sector and has even led to anti-government protests.
Furthermore, on August 2, the housing levy was also backdated to July 1, causing further financial implications for individuals and businesses in Kenya.
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