Bill proposes to defer taxes in start-up stock compensation

Treasury Cabinet Secretary Njuguna Ndung’u. FILE PHOTO | DIANA NGILA | NMG

Start-up workers who are awarded shares instead of cash could benefit from a deferral of taxes in a move aimed at stimulating niche firms to consider setting up employee share ownership plans (ESOPs).

The Finance Bill 2023 has proposed to delay taxes on shares given to employees as remuneration after the expiry of five years from the end of the year of the award of the shares.

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