Income Tax Act Kenya Summary

The official currency is the kenya shilling kes.

Income tax act kenya summary. Collection of tax from persons leaving or having left kenya 146 99. Collection of tax by distraint 149 103. Kenya is the economic financial and transport hub of east africa. Present in kenya for 183 days or more in that year of income or present in kenya in that year of income and in each of the two preceding years of income for periods averaging more than 122 days in each year of income.

For background on the bill see ey global tax alert kenya proposes tax laws amendments bill 2020 dated 16 april 2020. For the administrative and general provisions relating thereto. 470 chapter 470 income tax act date of assent. 1st january 1974 an act of parliament to make provision for the charge assessment and collection of income tax.

In the last decade the real gross domestic product gdp growth has averaged over 5. Exchange control income tax leaving or having left kenya repealed 148 100. For the ascertainment of the income to be charged. 470 income tax 3 issue 1 chapter 470 income tax act arrangement of sections.

Income tax act cap 470 is the act of parliament that is used to make it mandatory for all persons who have taxable income in kenya to pay 25 of that income as income tax to the government. The capital city of kenya is nairobi and the official languages are swahili and english. 1 this act may be cited as the income tax act and shall subject to the sixth schedule come into operation on 1st january 1974 and apply to assessments for the year of income 1974 and subsequent years of income. The measure resident tax payers owning residential properties in kenya that generate income will be taxed at 10 reduced from 12 contained in the finance bill of the gross rent received where the annual rental income is up to kshs 10.

21st december 1973 date of commencement. The act makes various changes to the prevailing tax laws in kenya. Therefore every person in kenya should know the basis of that 25 remittance to the government as income tax. Collection of tax from guarantor 149 101.

A person is considered to be tax resident in kenya if they. Print individual tax summary. For the purposes of section 3 2 a ii of this act an amount paid to. Security on property for unpaid tax 150 104.

A a person who is or was at the time of the employment or when the services were rendered a resident person in respect of any employment or services rendered by him in kenya or outside kenya. On 25 april 2020 the president of kenya assented to an act of parliament the tax laws amendment act 2020 the act.