wazua Sat, Apr 25, 2026
Welcome Guest Search | Active Topics | Log In

2 Pages12>
Tax obligations for professional services
Outvestor
#1 Posted : Saturday, January 23, 2016 12:40:53 AM
Rank: Member

Joined: 8/8/2009
Posts: 171
Hello all,

I'm about to sign a contract with a company that is registered and operates from outside Kenya (New Zealand).

The scope of engagement is for me to offer professional engineering/IT services as an indipendent contractor.

I will offer these services to the company's clients both within and outside Kenya.

The contract stipulates that I will be responsible for any local statutory tax obligations accruing from this engagement's service fee - interchangeably referred to as Salary, in sections of the contract.

Who has pointers as to what tax obligations I'm staring at? What are my legal options of swimming on the safe side of the Taxman's pool?

I only have a week to signal my agreement to the contract.

Thanks in advance.
¡ʇɹoɟɟǝ ƃuıɟɟǝ ǝɥʇ ɹoɟ ɥɔnɯ os ؛uıɐʌ uı ɔıqɐɹɐ ƃuıuɹɐǝן pǝıɹʇ ı
sparkly
#2 Posted : Saturday, January 23, 2016 7:45:43 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Outvestor wrote:
Hello all,

I'm about to sign a contract with a company that is registered and operates from outside Kenya (New Zealand).

The scope of engagement is for me to offer professional engineering/IT services as an indipendent contractor.

I will offer these services to the company's clients both within and outside Kenya.

The contract stipulates that I will be responsible for any local statutory tax obligations accruing from this engagement's service fee - interchangeably referred to as Salary, in sections of the contract.

Who has pointers as to what tax obligations I'm staring at? What are my legal options of swimming on the safe side of the Taxman's pool?

I only have a week to signal my agreement to the contract.

Thanks in advance.


Big question is whether to charge VAT or not.
Life is short. Live passionately.
Monk
#3 Posted : Saturday, January 23, 2016 8:23:19 AM
Rank: Member

Joined: 7/1/2009
Posts: 274
sparkly wrote:
Outvestor wrote:
Hello all,

I'm about to sign a contract with a company that is registered and operates from outside Kenya (New Zealand).

The scope of engagement is for me to offer professional engineering/IT services as an indipendent contractor.

I will offer these services to the company's clients both within and outside Kenya.

The contract stipulates that I will be responsible for any local statutory tax obligations accruing from this engagement's service fee - interchangeably referred to as Salary, in sections of the contract.

Who has pointers as to what tax obligations I'm staring at? What are my legal options of swimming on the safe side of the Taxman's pool?

I only have a week to signal my agreement to the contract.

Thanks in advance.


Big question is whether to charge VAT or not.



Services outside Kenya - No VAT
Services within Kenya - charge VAT.

Corporate Tax paid on quarterly basis, based on previous years financials.
Xymalos
#4 Posted : Saturday, January 23, 2016 9:11:02 AM
Rank: New-farer

Joined: 2/14/2015
Posts: 98
Location: Kenya
Outvestor wrote:
Hello all,

I'm about to sign a contract with a company that is registered and operates from outside Kenya (New Zealand).

The scope of engagement is for me to offer professional engineering/IT services as an indipendent contractor.

I will offer these services to the company's clients both within and outside Kenya.

The contract stipulates that I will be responsible for any local statutory tax obligations accruing from this engagement's service fee - interchangeably referred to as Salary, in sections of the contract.

Who has pointers as to what tax obligations I'm staring at? What are my legal options of swimming on the safe side of the Taxman's pool?

I only have a week to signal my agreement to the contract.

Thanks in advance.


Realizing it's an international contract that you are about to sign, it may be important to have your Kenyan lawyer review the contract.
Swenani
#5 Posted : Saturday, January 23, 2016 10:02:58 AM
Rank: User

Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
I assume that you will only pay taxes to the income earned in Kenya i.e for the work done in Kenya-Forincome earned outside Kenya or services offered outside kenya you wont be liable for taxes

But then again,if you spend more than 180 days in Kenya,then you will have to pay taxes regardless of where you earned the income
If Obiero did it, Who Am I?
radio
#6 Posted : Saturday, January 23, 2016 11:30:19 AM
Rank: Veteran

Joined: 11/9/2009
Posts: 2,003
Swenani wrote:
I assume that you will only pay taxes to the income earned in Kenya i.e for the work done in Kenya-Forincome earned outside Kenya or services offered outside kenya you wont be liable for taxes

But then again,if you spend more than 180 days in Kenya,then you will have to pay taxes regardless of where you earned the income


180 days per year or consecutive days?
Swenani
#7 Posted : Saturday, January 23, 2016 12:23:43 PM
Rank: User

Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
radio wrote:
Swenani wrote:
I assume that you will only pay taxes to the income earned in Kenya i.e for the work done in Kenya-Forincome earned outside Kenya or services offered outside kenya you wont be liable for taxes

But then again,if you spend more than 180 days in Kenya,then you will have to pay taxes regardless of where you earned the income


180 days per year or consecutive days?


If you spend 180 days in kenya cumulatively per year
If Obiero did it, Who Am I?
sparkly
#8 Posted : Saturday, January 23, 2016 2:24:51 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Swenani wrote:
I assume that you will only pay taxes to the income earned in Kenya i.e for the work done in Kenya-Forincome earned outside Kenya or services offered outside kenya you wont be liable for taxes

But then again,if you spend more than 180 days in Kenya,then you will have to pay taxes regardless of where you earned the income


He is a Kenya so the 180 day rule doesn't apply.
Life is short. Live passionately.
kaka2za
#9 Posted : Saturday, January 23, 2016 2:45:13 PM
Rank: Elder

Joined: 10/3/2008
Posts: 4,058
Location: Gwitu
sparkly wrote:
Swenani wrote:
I assume that you will only pay taxes to the income earned in Kenya i.e for the work done in Kenya-Forincome earned outside Kenya or services offered outside kenya you wont be liable for taxes

But then again,if you spend more than 180 days in Kenya,then you will have to pay taxes regardless of where you earned the income


He is a Kenya so the 180 day rule doesn't apply.


I think 183 days rule applies only when you don't have a permanent home in Kenya.
If you have, it doesn't matter how many days you are in Kenya.
Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
Ali Baba
#10 Posted : Saturday, January 23, 2016 3:36:48 PM
Rank: Member

Joined: 8/29/2008
Posts: 573
kaka2za wrote:
sparkly wrote:
Swenani wrote:
I assume that you will only pay taxes to the income earned in Kenya i.e for the work done in Kenya-Forincome earned outside Kenya or services offered outside kenya you wont be liable for taxes

But then again,if you spend more than 180 days in Kenya,then you will have to pay taxes regardless of where you earned the income


He is a Kenya so the 180 day rule doesn't apply.


I think 183 days rule applies only when you don't have a permanent home in Kenya.
If you have, it doesn't matter how many days you are in Kenya.
What is a PERMANENT HOME in a globalized world?Is it owning a house where I stay while in Kenya ? Is it where my children and wife lives??
2 Pages12>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Copyright © 2026 Wazua.co.ke. All Rights Reserved.