1. OLD TURNOVER TAX
The turnover tax was introduced in Kenya in 2007 (w.e.f. 1st January 2008) to enhance revenue collection, improve tax administration and reduce compliance and collection costs. Turnover Tax was introduced by the Finance Act 2007 through the provision of the Income Tax Act, Cap 470, under section 12c.
Turnover Tax was later replaced by Presumptive Income Tax through the Finance Act 2018 then reintroduced via Finance Act 2019 w.e.f 1st January 2020.
2. NEW TURNOVER TAX (ToT )
REGIME w.e.f. April 2020 President Uhuru Kenyatta assented the Tax (Amendment) Bill, 2020 bill into law with a view of cushioning Kenyans against the adverse effects of COVID 19. Turnover tax experienced major transformation especially by setting the new threshold to cover entities earning annual revenue between Kshs .1m to Kshs.50m