The Tax Procedures Act was amended in 2016 to introduce Section 37B which grants a tax amnesty on foreign income that that was earned on or before 31 December 2016 and is subject to tax in Kenya.

Section 37B was amended on 3rd April 2017 to provide that full amnesty would only be granted if the foreign income is declared and the funds that were realised are transferred to Kenya no later than 30th June 2018. Where no funds are transferred by 30th June 2018, then they must be remitted within 5 years thereof but subject to a 10% penalty.

Since the introduction of the amnesty, there have been various questions directed at the Kenya Revenue Authority requiring its clarification of various issues. Key among the enquiries was on what foreign earned income would be taxable in Kenya and therefore eligible for the tax amnesty.

In a bid to clarify as many of these issues as possible, the Kenya Revenue Authority has released a public notice in the form of a Frequently Asked Questions (FAQs) Guide. The FAQs answer a majority of these questions including giving examples of the foreign earned income that are subject of the tax amnesty provisions.

The KRA FAQ Guide can be accessed on this link.

In case you require further clarification on the tax amnesty or assistance with any other tax issue, please do not hesitate to contact us.