Contributed By MMC Africa Law
Withholding tax is payable by foreign investors. This is dependent upon on the category of income. For instance, the withholding tax rate applicable to management and professional fees is 20%. Dividends earned from a REIT will be subject to withholding tax of 5% for East African residents and 10% for non-residents.
Under the Income Tax Act, tax at a rate of 10% of the gross rental income is payable in respect of rent from residential property which is in excess of KES144,000 but less than KES10 million.
CGT is charged at the rate of 5% of the net gain. It is paid by the transferor.
The following are exempt from CGT: