Under Kenyan tax law, every person with an active PIN is required to file an annual income tax return, whether the return reflects taxable income or is a nil return.

This obligation applies irrespective of the individual’s residency status. The statutory deadline for filing individual tax returns is the 30th day of June following the end of the tax period (i.e., the calendar year running from 1st January to 31st December). Failure to comply attracts penalties and interest.

Section 3 of the ITA provides for the charge to tax. Section 3(1) provides that:

“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.”

Section 3(2) of the Income Tax Act defines taxable income broadly to include, inter alia: Business income, Dividends and interest, Employment income, Royalties, Rental income, Pension income, Income from digital marketplaces, Natural resource income, Lease premiums, Capital gains, and Income deemed by law to be income of a person.

Under Kenya’s tax regime, individuals (residents and non-residents) are taxe...