Frequently Asked Questions
Some insights on Kenyan Tax Regiem
How does the Kenyan tax system work?
Kenya operates a self-assessment tax regime, where taxpayers are required to file their own tax returns and submit them to the Kenya Revenue Authority (KRA).
What types of income are taxable in Kenya?
The following incomes are subject to taxation in Kenya:
- Employment income (salaries, bonuses, and allowances)
- Capital gains from the sale of property or shares
- Rental income from property leases
- Interest income from savings or investments
- Dividends from shares and investments
- Pension withdrawals and annuities
- Income from digital marketplaces
- Natural resource income
Who needs a KRA PIN in Kenya?
A KRA PIN is required for individuals and businesses engaging in:
- Property registration and transfer
- Vehicle registration and licensing
- Business name and company registration
- Importation, customs clearing, and trade licensing
- Applying for government tenders and contracts
- Opening bank accounts and mobile money pay bill/till numbers
- Professional body registrations and licensing
When is the deadline for filing KRA tax returns?
The deadline for filing individual tax returns (such as PAYE) is June 30th of every year. Businesses have up to six months after the end of their financial year to file.
Can I amend a tax return if I made a mistake when filing my taxes?
Yes, taxpayers can amend their tax returns within five years from the date of original submission.
What is the period allowable for amending a tax return?
Yes, taxpayers can amend their tax returns within five years from the date of original submission.