wazua Wed, Apr 29, 2026
Welcome Guest Search | Active Topics | Log In

2 Pages<12
Tax obligations for professional services
Options
Previous Topic · Next Topic
sparkly
#11 Posted : Saturday, January 23, 2016 5:27:37 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Ali Baba wrote:
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??


Permanent home is a permanent house where a person lives with his/her family.

A person pays tax where he/she is "resident". A person can live, travel, work, holiday, invest in many countries but is resident in one (if the countries have a tax treaty).

In case of a dispute where a person is resident, then you have the "tie breaker" rules. Where does he live (some guys live on a boat and sail up and down a river through different countries), citizenship, economic indications eg where bank accounts are held.

If all rules fail, the countries have to agree with what he says about his residency.
Life is short. Live passionately.
Back to top
  | | Edit by user: Saturday, January 23, 2016 5:29 PM | Reason: Not specified
Outvestor
#12 Posted : Tuesday, January 26, 2016 10:02:39 AM
Rank: Member

Joined: 8/8/2009
Posts: 171
This aspect of residency and workstation.... how does it pan out for someone who may be physically living in Kenya, but working remotely (via internet) on assignments outside the country?

¡ʇɹoɟɟǝ ƃuıɟɟǝ ǝɥʇ ɹoɟ ɥɔnɯ os ؛uıɐʌ uı ɔıqɐɹɐ ƃuıuɹɐǝן pǝıɹʇ ı
Back to top
  |
Swenani
#13 Posted : Tuesday, January 26, 2016 10:52:34 AM
Rank: User

Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
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.


So I guess where the source of income earned will be used to determine tax status.

But whatever the case, I think as a kenyan citizen, he will still be required to pay taxes unless he is exempted
If Obiero did it, Who Am I?
Back to top
WWW
  |
Ali Baba
#14 Posted : Tuesday, January 26, 2016 11:55:43 AM
Rank: Member

Joined: 8/29/2008
Posts: 573
Swenani wrote:
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.


So I guess where the source of income earned will be used to determine tax status.

But whatever the case, I think as a kenyan citizen, he will still be required to pay taxes unless he is exempted
How it works in the real world.If I worked say for 7 months in DRC,and I had left my wife in a Permanent home in Umoja,no one declares the income earned in DRC.Show me one kenyan who declared income which he/she earned in a foreign country even if they stayed for 183 days in Kenya.Show me just one Kenyan,boss....
Back to top
  |
Swenani
#15 Posted : Tuesday, January 26, 2016 12:25:40 PM
Rank: User

Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
Ali Baba wrote:
Swenani wrote:
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.


So I guess where the source of income earned will be used to determine tax status.

But whatever the case, I think as a kenyan citizen, he will still be required to pay taxes unless he is exempted
How it works in the real world.If I worked say for 7 months in DRC,and I had left my wife in a Permanent home in Umoja,no one declares the income earned in DRC.Show me one kenyan who declared income which he/she earned in a foreign country even if they stayed for 183 days in Kenya.Show me just one Kenyan,boss....


With the automation of annual returns and requirement to fill in your bank details, KRA will soon catch up with them na mtalilia kwa choo.

You are better off stealing from KDF armory than evading to declare your income
If Obiero did it, Who Am I?
Back to top
WWW
  |
Appz
#16 Posted : Thursday, January 28, 2016 10:53:54 AM
Rank: Hello

Joined: 12/18/2015
Posts: 6
In offering the professional services, you will be required to consider the following tax issues.
1. VAT- for local it will be subject to VAT at 16% and where exported it will be zero rated. A key determinant for this will be "use and consumption"
2. WHT- This may be applicable due to the nature of technical services. The rate may vary depending on where the recipient of the service resides and whether there is DTA between kenya and the country resident/consumer of the service.
3. Income tax-This will be taxable income whereas the expenses will be allowable for tax purposes.
4. PAYE-With regards to employment taxes, it will depend as to whether you will pay your employees (if any) or whether you will be paid salaries and wages by the contracting entity.
Back to top
  |
2 Pages<12
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.

Wazua SME Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.