The person making the payment deducts tax prior to paying the amount due. The tax withheld/deducted is then remitted to the KRA. The payer is required to generate a withholding tax certificate on iTax which is automatically sent to the payee once the payer remits the withholding tax to KRA. Withholding tax deducted should be remitted to KRA by the 20th day of the month following the month in which the tax was deducted.

Withholding tax is claimable by the payee when filing their annual tax returns and is not an additional tax

Where a payer fails to withhold tax, the tax shall be deemed to be due and payable by him as though he was the person who earned the income and the due date for the payment shall be the date on which the amount of tax should have been remitted to KRA.

A late payment penalty of 5% shall also apply on the tax due together with a late payment interest of 1% per month for the period that the tax remains unpaid.

There are a few instances where withholding tax is a final tax.

1. When deducted in relation to a payment made to a non-resident person with no permanent establishment in Kenya
2. When it relates to winnings, qualifying interest, qualifying dividend and pensions paid to resident persons

In every other case, withholding tax is not a final tax. The taxpayer (payee) is required to declare their income(s) and the withholding tax details when filing their annual tax returns and to pay any balance of tax due.

Employees are subject to PAYE taxes. The rates applicable are the individual tax (graduated scale) rates and the employer may take into account allowable deductions (such as mortgage interest) and reliefs (such as personal relief and insurance relief) when computing the PAYE.

This is a tax levied on legal instruments such as cheques, receipts, military commissions, marriage licenses, land transactions and shares.

Kenya Revenue Authority under Section 2 of the Stamp Duty Act (Cap 480).

It is payable in different rates, depending of the nature of the instrument.

Non-payment of the duty results in the invalidity of the relevant transaction and any agreement signed between the parties become null and void, and the same is inadmissible in a Court of Law as evidence.

Transaction instruments that are prepared locally, the tax should be paid within 30 days after assessment.

Documents executed abroad and sent for registration locally, Stamp Duty must be paid within 30 days of receiving the documents.

• Transfer of land to charitable organizations as gifts
• Transfer of property between spouses
• Transfer of family property to the members on demise of a family member in whose name the property was registered.

Login to iTax >> Payments >> Payment Registration >> Tax head (Agency Revenue), Sub head (Stamp Duty) >> click payment type (self – assessment) >>click on payment registration>> fill in bill reference number>> Nature of instrument>>details of the transfer (PIN) >> details of the buyer (PIN) >>details of stamp duty >>Rate of instrument >>total amount to be paid >> Mode of payment >> Submit

Failure to pay the duty and or assessed amounts leads to a fine that is assessed at five percent (5%) of the principal assessed stamp duty for every quarter from the date of the Instrument.

In accordance to East African Community Customs Management Act section 140, the Council of Ministers may grant remission of duty for the manufacture of goods in a Partner State either:

1. goods imported for use in the manufacture of goods for export under Export Promotion Program Office(E.P.P.O)
2. such goods imported for use in the manufacture of approved  goods for home consumption as the Council may, from time to time, by notice in the Gazette, determine under Essential Goods Production Support Program (E.G.P.S.P)

Is comprised of a representative from

1. the ministry responsible for finance i.e The National Treasury.
2. the ministry responsible for trade and industry.
3. the body representative of manufacturers i.e Kenya Assemblies of Manufacturers.
4. the Customs.
5. Any body or institution the Commissioner may deem fit to appoint for example Sugar Directorate.

Failure to comply with any of the Regulations will result in penalties as specified in Section 63 of the VAT Act (2013) which states that  “A person convicted of an offence under this Act for which no other penalty is provided shall be liable to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding three years, or to both”

All exemptions applications are lodged at the customs registry on 11th floor.

The following are the required documents;

• Application letter addressed to the commissioner of Customs & Border control
• Original medical certificate from a registered doctor – attach a certified copy (by a commissioner of oaths) in the application; present original during physical interview
• Original letter of recommendation from the Association for the Physically Disabled of Kenya or the National Council of Persons with Disabilities
• Copy of driving license with class ‘H’ endorsement (currently class F) – In case of visual, mental or hearing impairment, one is allowed to nominate a driver. A driver nomination letter, valid DL and copy of the ID are to be attached to the application. The driver should swear an affidavit to confirm the same. 
• Bill of lading for the vehicle – addressed to the applicant
• Invoice/Proforma invoice for the vehicle – addressed to the applicant
• Tax Compliance Certificate & Income Tax Exemption Certificate.
• Cash remittance/transfer slips used to pay for the vehicle (i.e. proof that
• Payment for the vehicle was made by the applicant)
• Bank statement of the applicant for the last six months – showing transaction for payment for the vehicle
• Copy of national ID card of the applicant
• Copy of NCPWD ID card
• Test drive in the presence of a customs officer – to be done at the point of entry e.g. Mombasa or JKIA e.t.c.
• Replacement of the motor vehicle shall be allowed after four years upon proof of disposal of the motor vehicle originally imported in accordance with Section 119 of The East African Community Customs Management Act, 2004. – This is for information

No. A person cannot have more than one motor vehicle duty free simultaneously.

A person is accorded an exemption on a motor vehicle once in every four years. However, all taxes have to be paid for, for the previously owned motor vehicle prior to issuing another one.

No. a person is allowed a motor vehicle for personal use only.