Expatriate tax ebook - Kenya

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax
This is suspended as of present, and therefore will not apply

Inheritance, estate & gift taxes
n/a

Investment income
The expatriate's residency status for Kenyan tax purposes will determine whether investment income, both local and foreign, such as interest, dividends etc, will become liable to Kenyan income tax.

Local dividends are taxed at 5 % and local interest at 15%. These are both final, unless the interest is from a non-qualifying source

Local taxes

NHIF(National Health Insurance Fund)
NSSF(National Social Security Fund)
PAYE (Pay as You Earn)
These are all deducted from the employee’s monthly salary.

Real estate tax
n/a

Social security taxes
NSSF contributions are at 5% of monthly income, subject to maximum of K.Shs. 200, payable by the employee and a similar top up by the employer. Figures and benefits are quite insignificant.

NHIF contributions are from K.Shs 30/-, up to a maximum of K.Shs 320/-, increasing in bands of 20/- for every 1,000/- increase in income. Again, benefits are not adequate and medical insurance is usually required as a top-up.

Stock options
An employee participating in a registered employee share ownership plan will be taxed at vesting on the difference between the offer price and the market value of the grant date as a benefit of employment.

Wealth tax
n/a

Other specific taxes
None of note.

Information about Kenya:

Last updated 14 June 2011

This information has been provided by Grant Thornton Kenya, a member firm within Grant Thornton International Ltd and is for informational purposes only. Neither Grant Thornton Kenya nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice
Disclaimer

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For further information on expatriate tax services in Kenya please contact Nishith Shah.

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