This is a form of income tax that is levied on corporate bodies such as limited companies and trusts.

1. CORPORATION TAX OVERVIEW

2. INTRODUCTION
This is a form of income tax that is levied on corporate bodies
such as limited companies and trusts.
It is levied on both resident and Non resident companies.

3. INTRODUCTION contd’
Companies that are based in outside Kenya but operate in Kenya
or have a branch in Kenya pay corporation tax on income
accrued within Kenya only.

4. CORPORATION TAX RATES
Resident companies are taxed at the rate of 25%
Non-Resident companies are taxed at the rate of 37.5%

5. CORPORATION TAX RATES
The tax is paid in advance at four equal installments. It is paid
before the year of income is over and before the accounts of the
business are prepared to establish the actual tax payable.

6. CORPORATION TAX RATES contd
 The installments are spread evenly @ 25% of the tax due and
payable on or before the 20th day of the 4th, 6th, 9th and 12th
months of the year except those in the Agricultural sector whose
installments are paid @ 75% in the 9th month and 25% in the
12th month.

7. CORPORATION TAX RATES contd
Balance of tax on self assessment is payable on or before the last
day of the fourth month following the end of the accounting
period.
The income Tax Company return should be filed on or before the
sixth month after the end of the accounting period.

8. TAX INCENTIVES
 Capital allowances
They include wear and tear allowances, industrial building deduction,
investment deduction and farm-works deductions.
 Investment deduction
An investor who incurs capital expenditure on building and/or
machinery used for manufacture is entitled to an investment
deduction equal to 100% of the cost.

9. TAX INCENTIVES contd
 Industrial Building Deduction
This is an allowance granted to an investor who incurs capital
expenditure on a building used as an industrial building at the rate of
10% of the cost (net of investment deduction, if any)
 Public expenditures
Expenditures of a capital nature incurred in that year of income (with
the prior approval by the Minister) by the person on the construction
of a public school, hospital, road or any similar infrastructure will be
an allowable deduction.

10. TAX INCENTIVES contd
 Export Processing Zones Incentives
 A 10-year corporate income tax holiday is available to certain
designated enterprises that undertake activities consisting of the
manufacture of goods for exports only (under the Export Processing
Zones) and a 25% tax rate for a further 10 years
 10 year withholding tax holiday on dividends and other remittances to
non-resident parties (except for EPZ commercial license enterprises)
 100% investment deduction on new investment in EPZ buildings and
machinery.

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