Income Tax Refunds

This refund will arise from tax overpayments by both individual and corporate taxpayers.

The following circumstances may lead to an income tax refund:

• Over deduction of tax(PAYE) by the employer


• Tax incentives on mortgage interest relief, insurance premium relief, and annual tax relief


• Exemption on account of disability.


• Overpayment of Instalment Taxes 


• Withholding Tax


• Advance Tax credits

NB: A claim for an Income Tax refund must be made within five (5) years from the date the tax was paid.

VAT Refunds

VAT refunds occur as a result of overpayment of taxes as a result of:

• Excess credits as a result of zero-rated supplies


• Excess credits arising out of withholding VAT


• Bad debts- after a period of three years but not more than 4 years from the date of that supply (where a registered person has made a supply and has accounted for and paid tax on that supply and has not received any payment from the person liable to pay the tax)

Excise Tax Refunds

Occurs when a person dealing with excisable goods manufactured in or imported into Kenya has paid excise duty.

The Commissioner shall, on application by the person, refund the excise duty paid if satisfied that

• Before being consumed or used in Kenya


• The goods have been damaged or stolen during the voyage or transportation to Kenya


• The buyer has returned the goods in accordance with the contract of sale.


• The excise duty paid in respect of spirits or illuminating kerosene that have subsequently been used by a licensed or registered manufacturer to manufacture un-excisable goods.