PERSONS WITH DISABILITIES (INCOME TAX DEDUCTIONS AND EXEMPTIONS) ORDER

LEGAL NOTICE NO. 36 of 2010 

1. Citation.

This Order may be cited as the Persons with Disabilities (Income Tax Deductions and Exemptions) Order, 2010.

2. Interpretation. Cap. 470

In this Order, unless the context otherwise requires—

• “Act” means the Persons with Disabilities Act;
• “Commissioner” shall have the meaning assigned to it under section 2 of the Income Tax Act;
• “Council” means the National Council for Persons with Disabilities established under section 3 of the Act.
• “Minister” means the Minister for the time being responsible for matters relating to finance;
• “total income” shall have the meaning assigned to it under section 2 of the Income Tax Act.

3. Eligibility for tax exemption.

A person with disability shall not be eligible to apply for tax exemption unless he or she is registered with the Council.

4. Application for tax exemption.

(1) A person with disability may apply for exemption from income tax to the Commissioner through the Council in Form 1 set out in the Schedule.

(2) The exemption under sub-paragraph (1) shall apply to the first one hundred and fifty thousand shillings of the total income per month.

(3) The Council shall establish a committee, whose members shall include a medical doctor, for the purposes of vetting applications for tax exemption.

(4) The Council shall after vetting an application for tax exemption, give a recommendation in Form 2 set out in the Schedule to the Commissioner.

5. Deductions from total income.

(1) In addition to deductions allowed under the Income Tax Act, and subject to the satisfaction of the Commissioner, expenses incurred in respect of the following shall be considered when determining the total income—

• (a) non-reimbursed amounts paid by a person with disability for treatment or admission in a hospital, nursing home or any other health facility;
• (b) non-reimbursed amounts paid by a person with disability for prescription drugs for that person’s use;
• (c) non-reimbursed amounts paid by a person with disability for goods and services that allow the person with disability to receive home care or personal care; or
• (d) cost of disability related assisting devices.
• Provided that the total deduction allowed under subparagraph (1) shall not exceed fifty thousand shillings per month.

(2) For the purposes of sub-paragraph (1)—

• (a) “home care” includes medical treatment, physical therapy, occupational therapy, speech and language therapy, and home based and personal care;
• (b) “personal care” includes assistance in the preparation or serving of meals, getting dressed, feeding, taking medication, personal hygiene and training in activities that relate to daily living skills.

6. Determination of application for exemption.

• (1) The Commissioner shall within thirty days of receipt of a recommendation from the Council under paragraph 4(4) determine the application for tax exemption.
• (2) The Commissioner may request for any other information that he may consider necessary to facilitate the determination of an application, including requiring the applicant to appear before him for an interview.
• (3) Where the exemption is granted, the Commissioner shall issue a tax exemption certificate to the applicant.
• (4) Where the exemption is not granted, the Commissioner shall, within thirty days of receipt of the application, notify the applicant of the denial in writing.

7. Appeals.

An applicant may appeal to the Minister through the Council against the decision of the Commissioner made under paragraph 6(4), within thirty days of receiving the notification of the decision.

8. Validity of tax exemption certificate.

A tax exemption certificate issued by the Commissioner under paragraph 6 shall be valid for three years.

9. Change of circumstances.

An eligible person shall, within sixty days of experiencing any change in his or her status that materially affects his eligibility for tax exemption, notify the Commissioner of the change.

10. Revocation of tax exemption certificate.

The Commissioner shall revoke a tax exemption certificate issued under paragraph 6 if he is satisfied that:

• (a) the status of the applicant has significantly changed in a manner that affects his or her eligibility status for the tax exemption; or
• (b) the applicant omitted material information at the time of making the application that if such information was submitted it could have affected his or her eligibility for tax exemption.

11. Offences.

Any person who fraudulently—

• (a) obtains or applies or attempts to apply to obtain an income tax deduction or exemption; or
• (b) gives or omits to give any material information which he or she is required to give under these Regulations,
• commits an offence, and is liable to a fine not exceeding ten thousand shillings or imprisonment for a term not exceeding one year, or both such fine and imprisonment.

SCHEDULE

FORM 1 (r. 4 (1))

THE PERSONS WITH DISABILITIES (INCOME TAX DEDUCTIONS AND EXEMPTIONS) REGULATIONS, 2010.

APPLICATION FOR INCOME TAX EXEMPTION

(To be submitted in duplicate)

CONFIDENTIAL

PART I

For Official Use Only

• Application No ……….
• Date Received ……….

The Director,

National Council for Persons with Disabilities

Nairobi

1. (a)

•  Name of applicant.......................................................................................................
• Sex ...................................................................................................................................
• Date of Birth......................................................................................................................
• Marital status.....................................................................................................................
• PIN Number ......................................................................................................................
• Physical address................................................................................................................
• Registration Number ........................................................................................................
• Postal address....................................................................................................................
• Telephone No.........................................Fax No. .............................................................
• E-mail address........................................ Website............................................................

(b) If applicant is not the same as the person with a disability, please state the following particulars of the person with disability in respect of whom the application is made:

• Name.................................................................................................................................
• Sex ...................................................................................................................................
• Marital status.....................................................................................................................
• PIN Number ......................................................................................................................
• Physical address................................................................................................................
• Registration Number ........................................................................................................
• Postal address....................................................................................................................
• Telephone No...................................................Fax No. ...................................................
• E-mail address..................................................Website...................................................

(c) Relationship of applicant with person with disability (attach evidence)......................

2. (a) Income Tax exemption is sought in respect of salary/self employment income/property/other (please specify in detail)

.................................................................................................................................................................................................

(b) If Income Tax exemption is sought in respect of salary please give the following information:

• Name and address of employer.......................................................................
• Employment Number .......................................................................................................
• Gross salary (please attach most recent pay slip) ...........................................................
• List other benefits (if any) provided by the employer (e.g. car, telephone)...........................................................................................................................................

(c) If tax exemption is sought in respect of self-employment income please give the following information:

• Nature of self-employment (Specify in detail and attach evidence) ...............................................................................................................................
• Physical address of place of self-employment.......................................................
• Annual income (attach all relevant evidence)..................................................

(d) If tax exemption is sought in respect of property income please give the following information:

Full particulars of property or properties (registered owner, land reference number, physical location  (attach evidence)

...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

• Approximate value of each property (please attach most recent pay)
• Tax assessed or demanded ...............................................................................................

DECLARATION

I, the undersigned hereby declare that all the information contained in this application is correct to the best of my knowledge and belief.

• Name......................................................................................................................................
• Signature................................................................................................................................
• Date........................................................................................................................................

FORM 2 (r. 4 (4))

THE PERSONS WITH DISABILITIES ACT (No. 14 of 2003)

THE PERSONS WITH DISABILITIES (INCOME TAX DEDUCTIONS AND EXEMPTIONS) REGULATIONS, 2010 CERTIFICATE OF RECOMMENDATION FOR INCOME TAX EXEMPTION FOR PERSON WITH DISABILITY

Recommendation Number …………

It is hereby certified that the person described hereunder who is registered as a person with disability (Registration Number…………………..) has been recommended for income tax exemption in respect of salary/self employment income/property/other income.

1. Name of person..........................................................................................
2. Sex.............................................................................................................
3. Marital status............................................................................................
4. PIN Number................................................................................................
5. Physical Address.........................................................................................
6. Postal Address............................................................................................
7. Recommendation for income exemption (please specify in detail).................................

This certificate expires on the................................day of ............................ 20...............

Issued this .................................................................. day of...........................................

Signature...........................................................................................

Director, National Council for Persons with Disabilities

Made on the 10th March, 2010.
UHURU KENYATTA,
Deputy Prime Minister and Minister for Finance.