Tax in kenya

Mark 10:47 NIV
When he heard that it was Jesus of Nazareth, he began to shout, “Jesus, Son of David, have mercy on me

The story of blind Bartimaeus is a testimony of one man’s determination to be healed. He refused to be silenced when others tried to SILENCE him as he cried out to Jesus.

As Jesus walked through Jericho, Bartimaeus, son of Timaeus heard that Jesus of Nazareth was passing by. Knowing he would not be able to make it through the press of people that surrounded Jesus, blind Bartimaeus called out to Jesus.

Even before Bartimaeus had personal contact with Jesus, he believed Him to be the Messiah. “Son of David” is the term Matthew used in his gospel to prove to the Jews that Jesus was the promised Messiah (Matthew 1:1). This title is a reference to the Messianic promise in Isaiah 9:6-7. The Messiah would be a descendant of David whose kingdom would last forever.

The Pharisees were questioning Jesus’ authority and had aligned Him with Beelzebub (Matthew 12:23-24). Yet here was blind Bartimaeus bellowing out the truth for anyone who would listen.

Tax Benefits For Non-profit Organizations In Kenya

The Kenyan government provides a range of tax incentives in an effort to encourage investments in certain projects however, this article restrains itself to focus on the tax incentives merited to non-profit organizations.
Taxable Exemptions Under the Public Benefits Organizations Act
Under the Second Schedule of the PBO Act, PBOs receive government support in the form of—
Exemptions from–
income tax on income received from membership subscriptions and any donations or grants;
income tax on income acquired from the active conduct of income producing activities if the income is wholly used to support the public benefit purposes for which the organization was established;
tax on interest and dividends on investments and gains earned on assets or the sale of assets;
stamp duty; and
court fees
Preferential treatment under value added tax (VAT), and customs duties in relation to imported goods or services that are used to further their public benefit purposes;
Incentives for donations by legal and natural persons;
Employment tax preferences; and
Special tax incentives for donations to form endowments, prudent investment policies, among others.
Taxable Exemptions under the Income Tax Act
Charitable Organizations/Foundations/Societies
Section 13 of the Income Tax Act as read together with section 10 in Part I of the First Schedule, provides that the income of an institution, body of persons or irrevocable trust, of a public character, established solely for the purposes of poverty alleviation or distress of the public, or the advancement of religion or education, all for public benefit, shall be tax exempt. The conditions to grant of tax exemption for these organizations include:
The organization must be established in Kenya; or have its regional headquarters situated in Kenya.
The Commissioner is satisfied that the income is to be expended either in Kenya or in the expenditure of that income is for purposes which result in the benefit of the residents of Kenya.
The organization’s income, which consists of gains or profits, shall not be exempt from tax unless those gains or profits are applied solely to those purposes (poverty alleviation or distress of the public, or the advancement of religion or education) and either -
the business is carried on in the course of the actual ex*****on of those purposes; or
the work in connection with the business is mainly carried on by beneficiaries under those purposes; or
the gains or profits consist of rents (including premiums or similar consideration in the nature of rent) received from the leasing or letting of land and chattels leased or let therewith.
Registered Trusts
In reiteration to the above, section 13 of the Act provides that the income of a registered trust is exempt from income tax.
Applications for Exemption from Income Tax
Whosesoever the aforementioned organizations seek to commence business, having satisfied that they are eligible for tax exemptions allowed to charitable organizations under paragraph 10 of the First schedule of the Income Tax Act, they shall apply to the Kenya Revenue Authority (KRA) which will culminate in the issuance of a Tax Exemption Certificate by the KRA. This is issued for a renewable term of five (5) years.
Charitable Donations
According to section 15(2)(w) of the Income Tax Act, donations to charitable organizations which hold a tax exemption certificate or to charitable projects approved by the Finance Minister, are tax deductible.
Asset Shifting
This is achieved by shifting the asset producing income to another person or entity that is taxed preferentially, i.e. taxed less that the person or entity shifting the asset. You could transfer the asset to a charitable trust which enjoys preferential tax treatment.
Taxable Exemptions on Value Added Taxes
As evident above, the PBO Act provides for preferential treatment under VAT and customs duties for imported goods or services that are used to further an organization’s public benefit purposes. The VAT Act, in its First Schedule, Part 2 Para. 11(a), also exempts the supply of services rendered by educational, political, religious, welfare, and other philanthropic associations to their members, provided that this shall not apply where any such services are rendered by way of business.