Ceasing your tax residency in Kenya can be a meticulous process, but with the right steps, you can navigate it smoothly. Whether you're relocating for work, family, or other reasons, following this guide will help ensure you meet all the necessary legal requirements.
Review Residency Status
Before initiating the process, confirm your current tax residency status. This includes understanding the number of days you've been present in Kenya within the tax year and your connections to the country, such as having a permanent home or business ties.
Determine New Residency
Identify your new country of residence and understand its tax laws. Ensure you meet the residency requirements of the new country to avoid dual residency complications.
Notify Kenya Revenue Authority (KRA)
Inform the KRA of your intention to cease tax residency. This is typically done through a formal letter or notification. The notification should include your reasons for leaving and the date of your intended departure.
Settle Outstanding Tax Liabilities
Ensure all your tax obligations in Kenya are settled before you leave. This includes filing any pending tax returns and paying any outstanding taxes. Obtain a tax clearance certificate from the KRA to confirm that you have no pending tax liabilities.
Deregister from PIN
Apply for deregistration from your Personal Identification Number (PIN) with the KRA. This is a critical step to formally cease your tax obligations in Kenya.
Close Local Bank Accounts
Close any local bank accounts that are not needed after your departure. Notify the banks of your change in residency status to ensure proper handling of your accounts.
Legal References
- Income Tax Act (Cap 470)
- Tax Procedures Act 2015
- Kenya Revenue Authority Guidelines
Useful Links
