Employment Income

INCOME TAX ACT “Individual” is defined as a natural person. “..A tax known as income tax shall be charged...for each year of income upon all the income of a person, whether resident or non-resident, which accrued in or was derived from Kenya.” “...income upon which tax is chargeable... Is income in respect of – (a) Gains or profits from... employment or services rendered... (c) Pension, charge or annuity...” Who then is liable to tax on employment income? Individuals are liable to tax on employment income as follows: i). resident individuals - taxable on worldwide employment income ii).non-resident individuals - taxable on the income received from employment with: A Kenya resident company or permanent establishment in Kenya of a non-resident company (e.g. Kenyan branch of foreign company) Employment income is the amount paid to: a) A person who is, or was at the time of the employment, a resident person in respect of any services rendered by him in Kenya or outside Kenya. b) Non-resident person in respect of any employment with or services rendered to an employer who is resident in Kenya or the permanent establishment in Kenya of an employer who is not so resident.