Overview of Minimum Tax

What is Minimum Tax

Minimum Tax is a base income tax payable of all persons regardless of whether or not they are making a profit.

Applicable rate of tax

The rate shall be 1% of gross turnover as provided under Section 34 and the Third Schedule of the Income Tax Act (CAP 470).

Effective date

The effective date for Minimum Tax is 1st January, 2021

Incomes Exempted from Minimum Tax

  • Income that is exempt under the Income Tax Act (CAP 470)
  • Employment income – Section 5
  • Income subject to Residential Rental Income Tax – Section 6A
  • Income that is subject to Turnover Tax – Section 12C
  • Income Subject to Capital Gains Tax – 8th Schedule
  • Income of Extractive Sector – 9th Schedule
  • A person engaged in business whose retail price is controlled by Government
  • A person is engaged in insurance business

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