Annually, Kenyan citizens returning from extended stays abroad, with some opting for permanent relocation, often bring back valuable possessions, including vehicles. To facilitate this process, the Kenya Revenue Authority (KRA) provides tax exemptions, subject to specific conditions.
Tax Exemption Criteria
First lets understand; who is a returning resident ?
KRA identifies a returning resident as a Kenyan citizen relocating from a foreign residence to any chosen location within the country.
Exempted Taxes
Returning residents are exempt from Import Duty, Excise Duty, VAT, and Import Declaration Form (IDF) for their imported vehicles
Vehicle Type and Quantity
Individuals in this category can enjoy a motor vehicle exemption, limited to one vehicle (excluding buses and minibuses).
The imported goods must arrive in Kenya within 90 days of the passenger’s arrival, extendable up to 360 days with Commissioner approval.
Requirements for Tax Exemption
Here are the requirements for tax exemption;
- Ownership and Usage
Applicants must demonstrate proof of vehicle ownership and its use 12 months prior to their return
2. Age of Vehicle
The vehicle must not exceed eight years from the date of manufacture.
3. Travel Evidence
Submission of a passport or relevant travel documentation as proof of travel.
4. Exemption History
Applicants must not have enjoyed a similar exemption within the last four years.
5.Timely Import
The vehicle must be shipped into the country within 90 days or an extended period (up to 360 days) with the Commissioner’s approval.
6. Permanent Residence
Exemption is granted only if the applicant is changing residence permanently.
Exemption Frequency
Individuals are eligible for an exemption on another motor vehicle once every four years, provided all duties on the earlier exempted vehicle have been paid.
7) Special Consideration
Non-Kenyan citizen spouses may receive tax exemption on a first-arrival basis if they are arriving for an assignment lasting a minimum of two years.
Returning Kenyan residents seeking tax exemptions for their vehicles must adhere to these guidelines set by the KRA, ensuring compliance with ownership, usage, and import timelines, among other specified conditions.
