Introduction

Kenya has gazetted the Income Tax (Minimum Top-Up Tax) Regulations, 2026 through Legal Notice No. 189 of 2026, providing the detailed framework for the implementation of the Minimum Top-Up Tax (MTT) introduced under section 12G of the Income Tax Act. The Regulations were published on 18th September 2026 and apply to years of income commencing on or after 1st January 2025. 

The Regulations introduce detailed rules on:

  •  Determining whether a multinational group falls within the scope of MTT;
  • Calculating net income or loss and adjusted covered taxes;
  • Determining the effective tax rate (ETR);
  • Computing the minimum top-up tax payable in Kenya;
  • Applying substance-based income exclusions;
  • Special rules for restructurings, joint ventures and minority-owned entities;
  • Compliance and filing obligations; and
  • Safe harbour and transitional provisions
     

 

Download Newsletter: Income Tax (Minimum Top-Up Tax) Regulations, 2026

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