Charge of tax.
(1)
Subject to , and in accordance with, this Act, a tax to be known as income tax shall be charged for each year of income upon all the income of a person, whether resident or non-resident, which accrued in or was derived from Kenya.
(2)
Subject to this Act, income upon which tax is chargeable under this Act is income in respect of -(a) gains or profits from -
- (i) a business, for whatever period of time carried on;
- (ii) employment or services rendered
- (iii) a right granted to another person for use or occupation of property;
(c)
- (i) a pension, charge or annuity; and
- (ii) any withdrawal from, or payments out of, a registered pension fund, or a registered provident fund or a registered individual retirement fund; and
- (iii) any withdrawals from registered home ownership savings plan.
(ca) income accruing from a business carried out over the internet or an electronic network including through a digital marketplace; (Finance Act 2021- wef-01July2021)
(d) (Deleted by 14 of 1982, s.17);
(e) an amount deemed to be the income of a person under this Act or by rules made under this Act;
(f) gains accruing in the circumstances prescribed in, and computed in accordance with, the Eighth Schedule.
(g)
(g) subject to section 15(5A), the net gain derived on the
disposal of an interest in a person, if the interest derives
twenty per cent or more of its value, directly or indirectly,
from immovable property in Kenya;
(h) a natural resource income ; and
(h) a natural resource income ; and
(i) gains from financial derivatives, excluding financial derivatives traded at the Nairobi Securities Exchange. (Finance Act 2022-wef-01-January-2023)
(2A)
The Cabinet Secretary shall make regulations to provide for the
mechanisms of implementing the provisions of subsection (2) (ca). Finance Act, 2019 effective 7th November 2019
(3)
For the purposes of this Section -Finance Act, 2014 effective1st Jan 2015(a) "person" does not include a partnership; and
(b) a bonus or interest paid by a designated co-operative society, as defined under section 19A, shall be deemed to be a dividend.
(ba)
(ba) “digital marketplace” means an online or electronic platform which enables users to sell or provide services, goods or other property to other users.
(c) for the purposes of subsection (2)(g) and section 15(5A) –
- (i)
“immovable property” means a mining right, an interest in a petroleum agreement, mining information or petroleum information;(Deleted by Finance Act 2023 wef 1st-July-2023 s3) - (ii) “net gain”, in relation to the disposal of an interest in a person, means the consideration for the disposal reduced by the cost of the interest; and
- (iii) the terms “consideration”, “cost”, “disposal”, “interest in a person”, “mining information”, “mining right”, “person”, “petroleum agreement”, and “petroleum information” have the meaning assigned to them in the Ninth Schedule.
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