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Capital Gains Tax (CGT) in Kenya

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Capital Gains Tax (CGT) in Kenya
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What is Capital Tax (CGT)

Capital Gains Tax (CGT) is a tax chargeable on the whole of a gain which accrues to a company or an individual on or after 1st January, 2015 on the transfer of property situated in Kenya, whether or not the property was acquired before 1st January, 2015.

It is not a new tax. It was suspended in 1985 and has now been re-introduced effective 1st January, 2015.The rate of tax is 5% of the net gain. It is a final tax and cannot be offset against other income taxes.


Who is liable to pay the tax?

The tax is to be paid by the person (resident or non-resident) transferring the property, that is, the transferor. The transferor can either be an individual or a corporate body.