Tax terms Kenya
  • INCOME TAX: tax imposed on income earned by individuals, companies, businesses, organisations, etc. Types of income tax include PAYE, individual income tax, corporation tax, withholding tax, rental income tax, etc.
  • VALUE ADDED TAX (VAT): a consumer tax charged on taxable goods and taxable services supplied in Kenya and/or imported into Kenya.
  • WITHHOLDING TAX: tax deductible from certain classes of income at the point of payment. eg, interest, dividends, royalties, commissions, rental income paid through agents, professional fees, pensions
  • EXCISE DUTY: tax imposed on goods and services manufactured in or imported into Kenya.
  • CUSTOMS DUTY: tax paid on the importation or exportation of goods.
  • RENTAL INCOME TAX: tax paid on monthly gross rental income earned where the monthly rent income is between Kshs. 24,000 per month and Kshs 15 million per annum.
  • DIGITAL SERVICE TAX: It is payable on income derived or accrued in Kenya from services offered through a digital marketplace.
  • CAPITAL GAINS TAX: income tax payable on the profit made on the transfer of property in Kenya acquired on or before January 2015. The current CTG is 15%
  • PAY AS YOU EARN (PAYE): a form of income tax imposed on income made from gainful employment.
  • TURNOVER TAX: tax imposed on the gross sales of a business. Currently turnover tax is payable by businesses with a turnover of between Kes 1m to 5M at the rate of 1%
  • CORPORATION TAX: tax imposed on profits made by resident companies or on foreign companies with a permanent establishment (PE) in Kenya for profits attributable to the PE. The current rate is 30% for resident companies and 37.5% for foreign companies.

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