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Tax Exemption in Kenya

Article Index
Tax Exemption in Kenya
Who should apply for Tax Exemption?
Application and duration for the Tax Exemption Status
Which Organizations should apply for the exemption?
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What is Tax Exemption?

Under the Income Tax Act, every person and individual has to file annual tax returns irrespective of whether any income was earned or paid to the person or individual. Businesses are taxed on profit earned i.e Every person should declare the income earned during the year and deduct expenses incurred to generate that revenue the surplus or profit remaining is taxable at 30% for resident companies, 37% for non resident companies and at graduated rates for individuals.

The surplus or profit is what we call exempt profit if the company or individual is tax exempt. However, this should not be confused with exempt income such as income for sale of fixed assets, interest from post office bank etc.

Who should apply for Tax Exemption?

The income of an institution, body of persons, or irrevocable trust, of a public character established solely for the purposes of the relief of the poverty or distress of the public, or for the advancement of religion or education.

The organization applying for exemption must satisfy the following requirements;