Employees earning a monthly income of Sh40,000 and above are set for more tax-free per diems, making the highflyers like chief executive officers and senior public officials with fat paychecks some of the major winners in the amendment proposed in the Finance Bill, 2024.
The Bill proposes to amend the Income Tax Act to exempt per diem —or the daily stipend designated to cover expenses incurred by employees during business travel —to five percent of an employee’s gross monthly salary.
