Uganda and Kenya: Coronavirus (COVID-19) emergency tax measures

Over the last two days, Uganda and Kenya have both announced emergency tax measures to deal with the effects of the coronavirus (COVID-19) outbreak.

In Uganda:

taxpayers with an accounting period ending on 30 September and required to file returns by 31 March 2020 have been granted an extension to 31 May 2020;
taxpayers unable to file monthly value-added tax (“VAT”), pay-as-you-earn (“PAYE”), excise duty and withholding tax returns, which are due on 15 April 2020, have been granted an extension to file by 30 April 2020;
taxpayers who have entered into instalment payment agreements with the Uganda Revenue Authority and have payments due in March 2020, have an option to defer and reschedule this instalment payment until May 2020; and
all border stations and customs warehouses will remain open to facilitate trade and movement of cargo.

In Kenya, President Uhuru Kenyatta, in a televised address, announced various tax cuts, including:

a reduction in the VAT rate from 16% to 14% with effect from 1 April 2020;
a reduction in the turnover tax rate from 3% to 1% for micro-, small- and medium-sized enterprises;
a reduction in the corporate and personal income tax rates from 30% to 25%; and
100% tax relief for individuals earning monthly income of up to KES24 000 (USD226 as at 26 March 2020).

Do not hesitate to contact ENSafrica if you require any further advice in this regard.

Celia Becker

Africa Regulatory and Business Intelligence | Executive

cbecker@ENSafrica.com

+27 82 886 8744

COVID-19, also known as the Coronavirus, is an infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) that was declared a pandemic by the World Health Organization on 11 March 2020. The disease has since been reported in over 190 countries.

No information provided herein may in any way be construed as legal advice from ENSafrica and/or any of its personnel. Professional advice must be sought from ENSafrica before any action is taken based on the information provided herein, and consent must be obtained from ENSafrica before the information provided herein is reproduced in any way. ENSafrica disclaims any responsibility for positions taken without due consultation and/or information reproduced without due consent, and no person shall have any claim of any nature whatsoever arising out of, or in connection with, the information provided herein against ENSafrica and/or any of its personnel. Any values, such as currency (and their indicators), and/or dates provided herein are indicative and for information purposes only, and ENSafrica does not warrant the correctness, completeness or accuracy of the information provided herein in any way.