Tax authorities
Treasury Building, Harambee Avenue, P.O. Box 30007, Nairobi. Kenya
Tel: +254 020 2252299
Website: www.treasury.go.ke
Tax rates at a glance
(As of September 8 2011)
| Corporate Income Tax |
30% |
| Turnover Tax |
3% |
| Capital Gains Tax |
0% |
| Branch Tax |
37.5% |
Withholding Tax |
|
| Dividends |
10% |
| Interest |
15% |
| Royalties |
20% |
| Commissions |
20% |
| Management, Professional and Training Fees |
20% |
| Sports and Entertainment Fees |
20% |
| Telecommunication Service Fees |
5% |
| Rent |
|
| Real Estate (Immovable Property) |
30% |
| Equipment |
15% |
| Agency, Consultancy or Branch Remittance Tax |
0% |
Net Operating Losses (Years) |
|
| Carryback |
0 |
| Carryforward |
4 |
- Turnover tax applies to taxpayers with annual gross turnover not exceeding KSH5 million ($53,000).
- Withholding tax on dividends applies to dividends paid to nonresidents. A 5% rate applies to dividends paid to residents.
- Withholding tax on interest applies to payments to residents and nonresidents.
- Withholding tax on royalties applies to payments to nonresidents. A 5% withholding tax is imposed on royalties paid to residents.
- Withholding tax on commissions applies to payments to nonresidents. For insurance commissions paid to residents, a 5% withholding tax rate applies to payments to brokers and a 10% rate applies to payments to others. The following commissions are exempt from withholding tax:
- Commissions paid to nonresident agents with respect to flower, fruit or vegetable auctions
- Commissions paid by resident air transport operators to nonresident agents to secure tickets for international travel
- Withholding tax on management, professional and training fees applies to management, professional and training fees paid to nonresidents. However, for consultancy fees, payments to citizens of other East African Community countries are subject to a reduced withholding tax rate of 15%. For residents, management, professional and training fees are subject to a withholding tax rate of 5%. The resident withholding tax rate for contractual fee payments is 3%.
- Withholding tax on the rent of immovable property applies only to payments to nonresidents.
- Withholding tax on the rent of equipment applies to rent paid to nonresidents under leases of machinery and equipment. Rent paid to residents under leases of machinery and equipment is exempt from withholding tax.
Source: Ernst & Young