Tax changes that become effective on January 1, 2017, as a result of the finance bill signed  by the president on 13 September 2016

• PAYE brackets have been expanded by 10% and the relief also increased by 10%. (now Kshs 15,360)
• VAT on service charge has been removed, provided that the service charge does not exceed 10% of the price of the service
• A taxpayer can apply for a refund of overpaid tax within a period of 5 years from the date which the tax was paid. Any amount not refunded within 2 years will accrue interest rate of 1% per month.
• Withholding tax on winnings from betting and gaming has now been abolished and replaced by a betting tax of 7.5% on the gaming revenue,  lottery tax at 5% on the lottery turnover, a gaming tax at 12% on gaming revenue and a prize competition tax at 15% on the cost of entry to a competition

Extracts from a report by the Grant Thornton Kenya team.