Residency & Employee Taxes in Kenya?
Employment income subject to tax is determined by the residency status of the
employee and where he was recruited from:
A resident is liable to tax on worldwide employment
A non resident is taxable on income
which accrues in or is derived from Kenya (s.3(1))
A person is Resident in Kenya where;
they have a permanent home in Kenya and
are in Kenya even for a single day in
the tax year (calendar year).
or Do NOT have a permanent home in Kenya and but are in Kenya for
183 days or more in aggregate during the
current tax year
more than 122 days per year in the current tax
year and the two preceding years
The Income Tax Act does not define what constitutes a
permanent home for the purposes of determining residency.
This creates a serious ambiguity and may lead taxpayers
to wrongly conclude on their residency status.