8~'KENYA REVENUEflJ~ AUTHORITY

Kenya governed by theTax Act

,PAYI::by employeesthrough the employer;WiJhholding Tax: by persons in receipt of interest,dividends, professional fees, etc.Advance Tax: by those with Public ServicesVehicles, other Commercial Vehicles, and Driversand Conductors of Public Service Vehicles.

Installme~t Tax: by individuals and corporatebodies where:-

-The tax is not fully collected at sourcethrough PAVE,

. Individual's final tax liability is above Kshs.40,000 for the year,

- Installments spread evenly at 25% of the taxdue,

- Payable on or before th~20th day of the 4th,6th, 9th, and 12th mon~~s for all Taxpayersexcept those in theA.gricultural sector,whose installments are 7'g(i/(iin the 9th monthand 25% sinthe 12th month.

TlJrnover1'ax (T01'); by Taxpay~r~ registered forTOT at the rate of 3% on gross sa;t~$Ji>Wyear.

To oeaDle to c:ompUtetheTax Ibooks of accounts and supportingbe maintained, showing a truebusinesstransactions.

,e Lommlssioner may audit any Taxpayer's

records selected for the purpose of verifyingdeclarations contained in theTax Return.

Expenses'wnlch . are allowable in computingtaxable profits are those wholly and exclusivelyincurred in the production of income.

~ -Tax incentives to investors and Taxpayers under thelaw include:-

0> Capitaldeductions,wear and tear allowance on capital assets,industrial buildings allowance,investment deductions for investors,farm works allowance for farmers

it ExportProcessingZone10 year tax holiday,Lower r?te of corporation tax,Exemptions from certain withholding taxes;

. Personal relief, Education/Life Insurancerei iefs.

. Deduction of mortgage interest paid onowner-occupied property up to a maximumof Ksh. 150,000 per annum w.e.f. 1/1/2006.

. Deduction on funds deposited underRegistered Home Ownership Saving Plan..Exemption on contribution to registeredpension schemes and funds.

. Tax exemptions for those who qualify.

. Deduction of capital expenditure incurredon the construction of public school,hospital, road or any other similar kind ofsocial infrastructure will be tax deductible

subject to prior approval of the Minister forFinance.

U.f~~~ ~ENALTIES.

The IncomeTaxAct provides for punitive penaltiesand interest charged for certain offences e.g. failureor late submission of Tax Returns; late payment ofTaxes due, underpayment of Installment Taxes,failure by Employers to deduct and account forPAVEetc.

at1.~f:f:UNDS '

Refunds are 'm~de to persons who submit claimswhere tax is overpaid and the Commissioner issatisfied that refund is due.

LTAX RATES:(ANNUAL)

Individual Rates of Tax Rate of Tax in Kshs.

First - Kshs. 116160

Next - 109440

10%

15%

Next - 109440

Next - 109440

20%

25%

I:xcess over 44480 30%

Personal Relief Shs. 12672 I 30% Resident

Corporation Rate of Tax 37.5%Non Resident

"":, = ' "".!!3iiiii""==

~. DISC-LA'MER,.,.. . I18~isinformation isforguida/i}ceonly.Any omissions do not absolye the taxpayer fromn;rakingtrue andc,orrect Re~\Jrnsand Statement ofAccounts.

IndividualRatesof Tax Rate of Tax in Kshs.

First- Kshs.121968 10%

Next-114912 15%

Next - 114912 20%

Next-114912 25%

Excess over 466704 30%

Personal Relief Shs. 13944130% Resident

It

Corporation Rate of Tax 37.5%Non Resident

m

~~ KENYA REVENUEfji~ AUTHORITY

For further information,Please visit the nearest DTD KRA office

Or

Contact Taxpayer Eduction ProgrammeOn:-

Tel: 0202812010/2816095/28130682813079/2812013

DOMESTIC TAXES DEPARTMENTHEAD OFFICE

Times Tower Building 19th FloorHaile Sellasie Avenue

POBox 30742 - 00100NAIROBI

Tel: 020 - 310900

Website: www.kra.go.keKRA Online Services Portal:http/www.kra.go.ke/portal

DMG/REVISEDon 5th October 2009

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