Tax Amnesty on Foreign Income and Assets

Applies to Kenyans in the diaspora and Kenyans living in Kenya who have property and income outside Kenya.

If you are Kenyan tax resident and have assets and income earned outside Kenya, there is currently a tax amnesty for any taxes potentially in arrears before 31 December 2016. The law requires you to declare all your foreign income and assets as at 31 December 2016, with the Kenya Revenue Authority undertaking not to assess any tax arrears, tax penalties or tax interest and also not to investigate into the sources of those foreign assets and income.

To benefit from this tax amnesty, the Kenyan tax resident person is required to file a special tax return on or before 30 June 2018 and repatriate all cash or cash equivalents held outside Kenya as at 31 December 2016. You will not be required to sell and repatriate any non-cash assets such as shares, bonds, bills or real estate assets.

Where one is not in a position to repatriate the full amount held in cash as at 31 December 2016 before the deadline (30 June 2018), then one will have an opportunity to repatriate any balances within a period of 5 years, until 30 June 2023, but pay a penalty of 10% of these balances repatriated after the deadline. This means for instance, if you had USD 100,000 cash in your foreign bank account on 31 December 2016, but currently have USD 80,000 in that account, then a penalty of 10% of the difference (USD 2,000) would be due.

Email tax@ushuru.co.ke for more information on this tax amnesty and filing the tax amnesty return for you.

www.ushuru.co.ke