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Exempted Incomes

As per the First Schedule.(Sec 13 and 14)

Please take note that this is summarized and deeper explanation is in the ACT. Read before applying.
  1. Income of a person expressly exempted by any ACT.
  2. Income of a person  or organization exempted by any ACT.
  3. Income of the President derived from salary.
  4. Income of "several" boards eg. Tea board, etc
  5. Deleted
  6. The income(Except of investments) of an amateur sporting association.
  7. Profits or gains of an agricultural society
  8. Income of any county government.
  9. Interest on tax reserve certificates-. wef25April2020
  10. Income of trust relieving poverty/distress, advancing education & religion.
  11. Consultancy fee which minister declares as tax-free for public interest.
  12. Income of a registered   pension scheme.
  13. Income of a registered  Trust scheme.
  14. Income of a registered  Pension Fund.
  15. Income of a registered   Provident Fund.
  16. Investment income of an annuity fund(insurance).
  17. Pensions or gratuities to wounded caused by war.
  18. Disturbance payment due to constitutional changes of partner state. wef25April2020
  19. Deleted 
  20. Deleted 
  21. Deleted 
  22. Foreign allowances paid to government.
  23. Income of the EAD bank  and of Corporations of Treaty for EAC.
  24. Deleted
  25. Emoluments of Desert Locust Survey officer not resident.wef25April2020
  26. Emoluments of armed forces & public servant of another country.
  27. Emoluments payable out of foreign sources for technical assistance/ development services.
  28. Education grant paid by the Government of the United Kingdom.wef25April2020
  29. Income of financial assistance from the International Co-operation Administration.
  30. Research Income of USA citizens working with department of Agriculture of USA.
  31. Reward paid by the UK Atomic Energy Authority for the discovery of uranium ore in Kenya.
  32. Non-resident consultancy income paid by the Tana River Development Co. Ltd. 
  33. Income of the East Africa Power and Lighting Company.
  34. Income of the General Superintendence Co. Ltd, a company incorporated in Switzerland.
  35. Interest on a savings in Kenya Post Office Savings Bank.
  36. Income of transfer of private residence occupied for 3years, land, deceased estate.
  37. Allowances payable to the Speaker...and all other MPs.
  38. Deleted
  39. Deleted
  40. Interest earned on contributions paid into the Deposit Protection Fund
  41. Interest paid on loans granted by the Local Government Loans Authority.
  42. Income of non-resident who carries on the business of aircraft owner. 
  43. Income of a registered individual retirement fund.
  44. Income of a registered HOSP.
  45. Income of the National Social Security Fund(NSSF). 
    • 45A-Income of the National Hospital Insurance Fund.
  46. Dividends received by a registered venture capital co, special economic zone enterprises.
  47. Gains arising from trade in shares earned by a registered venture capital company.
  48. Gains arising from trade in securities exchange.
  49. Interest income from Kenya by the Export-Import Bank of the United States.
  50. Investment income of a pooled fund.
  51. Interest income accruing from all listed bonds.
  52. Interest income from asset-backed securities.
  53. Bonuses, retirement benefits. Monthly pension granted to a person who is 65 years.
  54. Interest income on bonds issued by the E.A. Development Bank.
  55. Dividends paid by Special Economic Zone Enterprise.
  56. Compensating tax accruing to a power producer.
  57. Income of the National Housing Development Fund(NHDF).
  58. Income of individual who is registered under the Ajira Digital Program for 3years.*
  59. Withdrawal from NHDF by first-time home-owner to purchase house.*
  60. Interest income from all listed bonds used to raise funds for infrastructure, etc.
  61. Deemed interest-manufacturers of human vaccines.
  62. Payments made to non-resident for services-manufacturers of human vaccines.
  63. Compensating tax-manufacturers of human vaccines.
  64. Dividends paid to any non-resident person-manufacturers of human vaccines.
  65. Income of - manufacturers of human vaccines.
  66. Dividends paid by-SEZE, developers and operators
  67. Dividends paid by-SEZE to nonresident person


Others:
  1. Income of Registered unit trust, collective investment scheme, real estate investment trust, an investee company of a real estate investment trust exempt WHT. (S20-ITA)
  2. Interest on Government loans (s14-ITA)


WHT
  • commission paid to a non-resident agent in respect of flowers, fruits or vegetables exported
  • audit fees for analysis of maximum residue limits paid to a non-resident laboratory or auditor;
  • commission paid by a resident air transport operator to a non-resident agent in order to secure tickets for international travel.





NB: SECURITIES, THE INTEREST ON WHICH IS EXEMPT FROM TAX was Repealed by TaxLAA-No1-2020 wef-25April2020)

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