Kenya: Tax Laws (Amendment) Act entered into force

On 27 December 2024, the Tax Laws (Amendment) Act entered into force. The Act replaces the existing 1.5% Digital Service Tax with a Significant Economic Presence (SEP) tax applicable to non-residents earning from digital marketplaces at 3%. Additionally, the Act establishes a 15% Minimum Top-Up Tax (MTT) aligned with OECD’s Global Anti-Base Erosion Rules. The MTT applies to multinational groups with annual turnovers above KES 104 billion. The Act also establishes a withholding tax on income from digital marketplaces at 20% for non-residents and 5% for residents, along with excise duty on non-residents providing services via digital platforms.