Income of certain non-resident persons deemed derived from Kenya
(1)
Where a non-resident person carries on the business of shipowner,
charterer or air transport operator and a ship or aircraft owned or
chartered by him calls at any port or airport in Kenya, the gains or profits
from that business from the carriage of passengers who embark, or cargo
or mail which is embarked, in Kenya shall be the gross amount received
on account of the carriage; and those gains or profits shall be deemed to
be income derived from Kenya; but this subsection shall not apply to
gains or profits from the carriage of passengers who embark, or cargo or
mail which is embarked, in Kenya solely as a result of transshipment.
- Provided that all income of a non-resident shipping line including income from delay in taking delivery of goods or returning any of the equipment used for transportation of goods shall be deemed to be income derived from Kenya. Finance Act, 2019 Effective 7th November 2019
(2)
Where a non-resident person carries on, in Kenya, the business of
transmitting messages by cable, radio, optical fibre, television
broadcasting, Very Small Aperture Terminal (VSAT), internet, satellite or
by any other similar method of communication, then the gains and
profits from the business shall be the gross amount received for the
transmission of messages which are transmitted by the apparatus
established in or outside Kenya, whether or not those messages originate
from Kenya, and such gains and profits shall be deemed to be income
derived from Kenya.(3) Where a resident person enters into a financial derivatives contract with a non-resident person, any gain accruing to the non-resident person from that arrangement shall be subject to tax at the rate specified in the Third Schedule. (Finance Act 2022-wef-01-January-2023)
(4) The provisions of subsection (3) shall be carried out in accordance with Regulations made by the Cabinet Secretary. (Finance Act 2022-wef-01-January-2023)
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