Who Is A Resident in Kenya?
(Source: PwC website)
A person is considered to be tax resident in Kenya if they:
1. have a permanent home in Kenya and were present in Kenya for any period in a particular year of income under consideration, or
2. do not have a permanent home in Kenya but were:
(a) present in Kenya for 183 days or more in that year of income, or
(b) 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.
Effective 1 July 2022, the Finance Act, 2022 defined the phrase ‘permanent home’ to mean a place where an individual resides or that is available to that individual for residential purposes in Kenya, or where, in the opinion of the Commissioner, the individual’s personal or economic interests are closest.
Limitations:
Non-Residents do not qualify for tax reliefs.
1. A resident individual with taxable income is entitled to a personal relief.
2. A resident individual shall be entitled to insurance relief
3. A resident individual qualifies for affordable housing relief
Note on Income:
(Source: PwC website)
Resident employees are taxed on worldwide earned income, in respect of any employment or services rendered in Kenya or outside Kenya. Residents are also taxed on any other income that has accrued in or is derived from Kenya.
Non-resident employees are taxable only on their income earned from within Kenya or derived from Kenya.