Kenya Tax Law

This section gives you details on the Kenya Tax law.Below are some topics and a comprehensive introduction to the Kenya Tax law.

• Structure of taxation in Kenya
• Canons of a good tax system
• Classification of Taxes
• Indirect taxes
• Imposition of tax in Kenya
• Tax avoidance In Kenya

 An overview of Kenya tax law
Kenya Tax law is an area of legal study dealing with the statutory, regulatory, constitutional, and common-law rules that constitute the law applicable to taxation, which is the method by which the  Kenya government levies on economic transactions.

Forms of taxes and excises 
There are various types and forms of taxes under the Kenya tax law.This include:

• Personal income taxes

Income taxes on individuals are the most significant source of revenue in Kenya.
Personal income taxes under the Kenya tax law are imposed on the personal income of each person on a progressive basis, with higher rates applying to higher income levels. Unlike some other countries, personal income tax in Kenya is imposed on an individual and not on a family unit.
Individuals are also taxed on their share of any partnership or trust profits to which they are entitled for the financial year.  

•  Capital gains tax

Capital Gains Tax (CGT) in the context of the Kenya taxation system applies to the capital gain made on disposal of any asset, except for specific exemptions. CGT operates by having net gains treated as taxable income in the tax year an asset is sold or otherwise disposed of.  

• Corporate taxes 

Companies and corporations pay company tax on profits. Tax is paid on corporate income at the corporate level before it is distributed to individual shareholders as dividends 

• Goods and Services taxes

This is the tax that the Kenya Government levies a value added tax of a certain percentage on the supply of most goods and service.

•  Property taxes 

 The Kenya government are typically funded largely by taxes on land value (council rates) on residential, industrial and commercial properties.The government also levies stamp duties on transfers of land and other similar transactions.

•  Customs duties 

Customs duties under the Kenya tax law are imposed on many imported goods such as alcohol, tobacco products, perfume, and other items. Some of these goods can be purchased duty-free at duty free shops.