Kenya Corporate Income Tax

Corporation tax rates, base and deadlines

Resident companies are taxed at a flat 30% on worldwide income attributable to Kenya, while branches of non-resident companies pay a higher rate. Tax is paid in quarterly instalments with a balancing payment after year end.

• Resident company corporation tax rate — 30% percent (Income Tax Act (Cap 470), Third Schedule)
• Branch of a non-resident company (permanent establishment) rate — 37.5% percent (Income Tax Act (Cap 470), Third Schedule)
• Reduced rate — start-ups certified by the Nairobi International Financial Centre Authority — 15% for the first 3 years, then 20% for the following 4 years percent (Income Tax Act (Cap 470))
• Tax base — Net taxable business profit (accounting profit adjusted for disallowed expenses, capital allowances and exempt income); income accrued in or derived from Kenya (Income Tax Act (Cap 470))
• Capital Gains Tax (CGT) on transfer of property/securities — 15% on the net gain percent (Income Tax Act (Cap 470), Eighth Schedule)
• Withholding tax on dividends to residents — 5% (exempt where the resident recipient company controls 12.5%+ of the payer) percent (Income Tax Act (Cap 470), Third Schedule)
• Withholding tax on dividends to non-residents — 10% (5% for citizens of East African Community member states on listed shares) percent (Income Tax Act (Cap 470), Third Schedule)
• Withholding tax on interest — 15% (general rate, residents and non-residents) percent (Income Tax Act (Cap 470), Third Schedule)
• Withholding tax on royalties — residents — 5% percent (Income Tax Act (Cap 470), Third Schedule)
• Withholding tax on royalties — non-residents — 20% percent (Income Tax Act (Cap 470), Third Schedule)
• Withholding tax remittance deadline — By the 20th day of the month following deduction (Income Tax Act (Cap 470); Tax Procedures Act, 2015)
• Instalment (advance) tax — Paid quarterly — by the 20th of the 4th, 6th, 9th and 12th months of the accounting period (Income Tax Act (Cap 470); Tax Procedures Act, 2015)
• Corporation tax return filing deadline — Within 6 months after the end of the accounting period (Tax Procedures Act, 2015)
• Balance of tax payment deadline — Within 4 months after the end of the accounting period (by the last day of the 4th month) ((approx — confirm)) (Tax Procedures Act, 2015)