TAX EXEMPTION ON EMPLOYMENT INCOME EARNED BY PERSONS WITH DISABILITIES

Kenya Revenue Authority’s attention has been drawn to a  notice to  employers by the National Council for Persons With Disabilities (NCPWD) that appeared in the Daily Nation on f 3rd May, 2006 on the above subject

It is important to note that although Parliament enacted The Persons With Disabilities Act 2003, the commencement of this Act was to be by Notice.  The Minister for Gender, Sports, Culture and Social Services through Legal Notice No. 64 of 2004 gave the commencement date to operationalize sections of the Act other than sections 22, 23, 24, 35(1), 35(2), 39 and 40.

Although section 12(3) provides for exemption of employment income, the mechanism of granting such exemption is contained in sections 35(1) and section 35(2) which are not yet operational.

Employers are therefore advised to deduct PAYE on all eligible employees including persons with disabilities.

COMMISSIONER FOR DOMESTIC TAXES.