Contents

CHAPTER 470 – THE INCOME TAX ACT

About Us | Terms | Privacy | Comments/Sharing | Disclaimer 

PART I - PRELIMINARY

• 1-  Short title and commencement.
• 2-  Interpretation.

PART II - IMPOSITION OF INCOME TAX

• 3-  Charge of tax.
• 4-  Income from businesses.
• 4A- Income from business where foreign exchange gain or loss is realized.
• 4B- Export processing zone enterprise.
• 5-  Income from employment etc.
• 6-  Income from the use of property.
•       6A.-Imposition of residential rental Income Tax.
• 7-  Income from dividends.
• 7A- Dividend Distributed out of Untaxed gains or profit
• 8-  Income from pensions.
• 9-  Income of certain non-resident persons deemed derived from Kenya.
• 10-  Income from management or professional fees, royalties, interest andrents.
• 11-  Trust income, etc. deemed income of trustee, beneficiary, etc.
• 12-  Imposition of instalment tax.
• 12A: Imposition of advance tax.
• 12B: Imposition of fringe benefit tax.
• 12C-Turnover Tax and Presumptive tax 
• 12D:Minimum tax.
• 12E:Digital service tax. 

PART III - EXEMPTION FROM TAX

• 13-  Certain income exempt from tax, etc.
• 14-  Interest on Government loans, etc., exempt from tax.

PART IV - ASCERTAINMENT OF TOTAL INCOME

• 15-  Deductions allowed.
• 16-  Deductions not allowed.
• 17-  Ascertainment of income of farmers in relation to stock.
• 17A- Presumptive income tax.(Repealed by 9 of 2000, s 43)
• 18-  Ascertainment of gain or profits of business in relation to certain non- resident persons.
• 18A-  Preferential tax regime- Finance Act, 2017 effective 3rdApril 2017
• 19-  Ascertainment of income of insurance companies.
• 19A- Co-operative societies.
• 20-
• Collective Investment Schemes
• 21- Members' clubs and trade associations.
• 22- Purchased annuities, other than retirement annuities etc.
• 22A- Deduction in respect of contributions to registered pension or provident funds.
• 22B- Deductions in respect of registered individual retirement funds.
• 22C- Registered home ownership savings plan. (Repealed)
• 23-  Transactions designed to avoid liability to tax.
• 24-  Avoidance of tax liability by non-distribution of dividends
• 25-  Income settled on children.
• 26-  Income from certain settlements deemed to be income of settler.
• 27-  Accounting periods not coinciding with year of income, etc.
• 28-  Income and expenditure after cessation of business.

PART V - PERSONAL RELIEFS

• 29-  General
• 30-  Personal relief
• 30A - Affordable housing relief
• 31-  Insurance relief
• 32-  Special Single Relief (Repealed)
• 33-  Insurance Relief (Repealed)

PART VI - RATES, DEDUCTIONS AND SET-OFF OF TAX AND DOUBLETAXATION RELIEF 

A-  Rates of Tax

• 34- Rates of tax
• 34A- Deduction in respect of certain rates of tax (Repealed)

B- Deduction of Tax

• 35-  Deduction of tax from certain income
• 36-  Deduction of tax from annuities, etc paid under a will, etc
• 37-  Deduction of tax from emoluments
• 37A- Penalty for failure to make deductions under Section 35, 36 or 37
• 38-  Application to Government

C Set-off of Tax 

• 39-  Set-off of tax
• 39A-  Set-off of import duty
• 39B-  Set-off tax rebate for apprenticeships

D - Double Taxation Relief

• 40-  Relief in respect of inter-state tax (Repealed)
• 41-  Special arrangements for relief from double taxation
• 41A - Agreements for exchange of information
• 42-  Computation of credits under special arrangements
• 43-  Time limit

PART VII - PERSONS ASSESSABLE

• 44-  Income of a person assessed on him.
• 45-  Wife's income, etc.
• 46-  Income of incapacitated person.
• 47-  Income of non-resident person.
• 48-  Income of deceased person, etc.
• 49-  Liability of joint trustees.
• 50-  Liability of person in whose name income of another person is assessed.
• 51-  Indemnification of representative.

PART VIII - RETURNS AND NOTICES

• 51A -Returns,records, etc tobe in officiallanguages
• 52- Returns of income and notice of chargeability
• 52A- Return of income and notice of chargeability (Repealed)
• 52B- Final return with self-assessment
• 53-  Provisional returns
• 54-  Documents to be included in return of income
• 54A- Keeping of records of receipts, expenses, etc.
• 55-  Books and accounts*Finance Act,2016Effective 1stJanuary 2017 in the TPA 2nd Sch Par 3
• 56-  Production and preservation of books, attendances, etc.*Finance Act,2016Effective 1stJanuary 2017 in the TPA 2nd Sch Par 3
• 57-  Return of salaries, pensions, etc.
• 58-  Returns as to fees, commissions royalties, etc.
• 59-  Occupier's return of rent.
• 60-  Return of lodgers and inmates.
• 61-  Return of income received on account of other persons.
• 62-  Return as to income exempt from tax.
• 63-  Return in relation to settlements.
• 64-  Return in relation to registered pension fund, etc.
• 65-  Return of annuity contract benefits.
• 66-  Return of resident company dividends.
• 67-  Return as to interest paid or credited by banks, etc.
• 68-  Return as to dividends paid by building societies
• 69-  Access to official information
• 70-  Further returns and extension of time
• 71-  Return deemed to be furnished by due authority
• 72-  Additional tax in event of failure to furnish return or fraud in relation to a return
• 72A- Offences in respect of failure to furnish return or fraud in relation to return
• 72B- Penalty for the negligence of authorized tax agent
• 72C- Penalty on underpayment of instalment tax
• 72D- Penalty on unpaid tax

PART IX - ASSESSMENTS

• 73-  Assessments
• 74-  Provisional assessments
• 74A- Instalment assessments
•  74B- Minimum additional tax or penalty
• 75-  Assessment of person about to leave or having left Kenya
•  75A - Assessment in certain cases
• 76-  Assessment not to be made on certain employees
• 76A- Assessment not to be made on certain income
• 77-  Additional assessments
• 78-  Service of notice of assessment, etc
• 79-  Time limit for making assessments, etc
• 80-  Assessments list
• 81-  Errors, etc, in assessments or notices

PART X - OBJECTIONS, APPEALS AND RELIEF FOR MISTAKES

• 82-  Local Committees
• 83-  The Tribunal
• 84-  Notice of objection to assessment
• 85-  Powers of Commissioner on receipt of objection
• 86-  Right of appeal from Commissioner's determination of objection
• 87-  Procedure on appeals
• 88-  Finality of assessment
• 89-  Application of appeal procedure to other decisions, etc, of Commissioner
• 90-  Relief in respect of error or mistake
• 91-  Rules for appeals to the Court.
• 91A- Appeals to Court of Appeal

PART XI - COLLECTION, RECOVERY AND REPAYMENT OF TAX 

• 92-  Time within which payment is to be made
• 92A- Due date for payment of tax under self-assessment
• 93-  Payment of tax where notice of objection, etc
• 94-  Interest on unpaid tax
• 95-  Interest on underestimated tax
• 95A- Penalty in respect of instalment tax (Repealed)
• 96-  Appointment and duties of agent
• 96A-Preservation of funds
• 97-  Deceased persons
• 98-  Collection of tax from persons leaving or having left Kenya
• 99-  Exchange control income tax certificates (Repealed)
• 100-  Collection of tax from guarantor
• 101-  Collection of tax by suit
• 102-  Collection of tax by distraint
• 103-  Security on property for unpaid tax
• 104-  Collection of tax from shipowner, etc
• 105-  Refund of tax overpaid
• 106-  Repayment of tax in respect of income accumulated under trusts

PART XII - OFFENCES AND PENALTIES

• 107-  General penalty
• 108-  Additional penalties
• 109-  Failure to comply with notice, etc
• 110-  Incorrect returns, etc
• 111-  Fraudulent returns, etc
• 112-  Obstruction of officer
• 113-  Evidence in cases of fraud, etc
• 114-  Power of Commissioner to compound offences
• 115-  Place of trial…
• 116-  Offences by corporate bodies
• 117-  Officer may appear on prosecution
• 118-  Tax charged to be payable notwithstanding prosecution
• 119- Power to search and seize…
• 120- Power to inspect books and documents
• 121- Admissibility of evidence

PART XIII - ADMINISTRATION

• 122-  Appointment of Commissioner and other officers
• 123-  Commissioner's discretion to abandon or remit tax
• 123A-  Amnesty for Penalties and interest
• 123B-  Commissioner to refrain from assessing tax in some cases
• 123C-  Commissioner to refrain from assessing or recovering tax in certain cases
• 124-  Exercise of powers etc
• 125-  Official secrecy
• 126-  Offences by or in relation to officers, etc

PART XIV - MISCELLANEOUS PROVISIONS

• 127-  Form of notices, returns, etc (127A, 127B, 127C, 127D, 127E)
• 128-  Service of notices, etc
• 129-  Liability of manager, etc, of corporate body
• 130-  Rules
• 131-  Exemption from stamp duty
• 132-  Personal identification numbers
• 133-  Repeals and transitional

SCHEDULES

• FIRST SCHEDULE - Exemptions(Part I and II)
• SECOND SCHEDULE - Deductions in respect of capital expenditure(Part I to VI)
• THIRD SCHEDULE - Rates of personal reliefs and tax(Head A and B)
• FOURTH SCHEDULE - Financial institutions
• FIFTH SCHEDULE - Scheduled professions and scheduled Qualifications
• SIXTH SCHEDULE - Transitional provisions
• SEVENTH SCHEDULE  - Special provisions as to Community employees (Repealed)
• EIGHTH SCHEDULE - Accrual and computation of gains from transfer of property(Parts I&II) Updated
• NINTH SCHEDULE - Taxation of petroleum companies
• NINTH SCHEDULE -
• PART I – INTERPRETATION.
• PART II – TAXATION OF MINING OPERATIONS.
• PART III – PETROLEUM OPERATIONS.
• PART IV — COMMON RULES APPLICABLE TO MINING AND PETROLEUM OPERATION.
• TENTH SCHEDULE - Agricultural produce and its authorized agents
• ELEVENTH SCHEDULE - Taxation of export processing zone enterprises
• TWELFTH SCHEDULE Provisions relating to instalment tax
• THIRTEENTH SCHEDULE  - Transactions for which PIN will be required

SUBSIDIARY LEGISLATION

• DECLARATION OF CROPS
• DECLARATION OF MINERALS
• Notices  under Legal Notices on Exemptions sections: 
• -13(2) &14(2)  
• -35(7)  
• - 41
• Legal Notices No: 51,  53,  54,  82,  37,  48,  91,  165.
• Rules under THE INCOME TAX sections:
• S.82-LOCAL COMMITTEE RULES
• S.83-TRIBUNAL RULES
• S91-APPEALS TO THE HIGH COURT RULES
• S.130-PAYE RULES(Amendment) 2010-Updated 
• DISTRAINT RULES(Amendment) 2008  
• Distrainer Charges
• PRESCRIBED DWELLING-HOUSE RULES
• RETIREMENT BENEFIT(Amendment) RULES 2008
• INVESTMENT DUTY SET OFF RULES 1996-Revoked
• VENTURE CAPITAL COMPANY (Amendment)RULES  2008
• HOME OWNERSHIP SAVINGS PLAN (Amendment)RULES 1995
• REGISTERED UNIT TRUSTS/Collective Investment Schemes RULES 2003
• WITHHOLDING TAX RULES 2001-Updated
• LEASING RULES, (Amendment) 2009
• NATIONAL SOCIAL SECURITY FUND (EXEMPTION)RULES, 2002
• Transfer Pricing Rules
• Charitable Donations Regulations 
• Turnover Tax Rules
• Legal notice no52-Advance Tax(Conditions and procedures) rules.

• Blogger Additions
• DIGITAL SERVICE TAX REGULATIONS,2020
• DST Regulations 2020 (Updated)
• PERSONS WITH DISABILITIES (INCOME TAX DEDUCTIONS AND EXEMPTIONS) ORDER, 2010