This article highlights tax exemptions for persons living with disability in Kenya. Kenya Revenue Authority (KRA) exempts persons living with disability from paying tax, particularly tax on their monthly/annual income and car import tax.
1. Tax Exemption On Monthly/Annual Income
Persons living with disability are granted a tax exemption on their monthly or annual income. The exemption applies to the first Kshs 150,000 per month or the first Kshs 1.8 million per annum.
Requirements When Applying For Income Exemption Certificate
- KRA PIN certificate.
- Disability medical assessment report that stipulates the nature of disability and upholds the signature of the director of medical services (Afya House).
- National ID.
- NCPWD disability card.
- Certificate copy of latest pay slip where applicable.
- A letter from the employer where applicable, clearly stating the nature of disability and how it affects the employee’s productivity at place of work.
- Tax compliance certificate.
- Applicants to physically appear for interviews before domestic taxes department offices for an acknowledgement slip.
2. Car Import Tax Exemption
KRA exempts persons with disability from paying duty for importation of vehicles which are specially designed or modified to meet the nature of disability.
Requirements For Car Import Tax Exemption
- Application letter addressed to the commissioner of customs services.
- Original medical certificate from a registered doctor.
- Original letter of recommendation from the Association for the Physically Disabled of Kenya or National Council of Persons With Disabilities.
- Copy of driving license with class H endorsement.
- Bill of lading for the vehicle.
- Invoice/proforma invoice for the vehicle.
- Tax compliance certificate/ tax exemption certificate.
- Cash remittance transfer slips used to pay for the vehicle (proof that payment for the vehicle was made by the applicant).
- Bank statement for the last six months.
- Test drive in using the modified vehicle (specially designed to suit the nature of the disability) in the presence of a customs officer.
- Where the applicant has previously been granted exemption on a vehicle under this category, subsequent exemption shall not apply unless such person has used the motor vehicle imported on exemption for a period of 4 years and tax has been paid for the vehicle upon which exemption had been previously granted.