Expatriates Tax Compliance and Advice (Foreign Employees)
A large majority of expats claim that their tax affairs in Kenya, and in East Africa at large, are in order and there is no need for concern. However, on further inspection it quickly becomes obvious that this is untrue as their tax submissions are in fact incorrect. Which if not corrected could lead to serious implications legally and at KRA.
Intelpoint Consulting provides the following expatriate tax services to ensure your tax returns are fully compliant and in line with Kenyan tax requirements or the legal requirements of the respective jurisdictions:
Tax planning for expatriate employees to Kenya is of the utmost importance. It will pay you to go to lengths to ensure that you are not tax resident in Kenya. Should you have no choice but to become tax resident, it will still be a good idea to know in advance when you will become tax resident and thereby making use of certain planning before you become resident.
The work permit class and application should also be carefully considered as this may have an impact on your tax status or, even more concerning for most, impact on your exchange control residency.
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- Kenya Shilling or other currency package;
- Where the expatriate will be working;
- Who is the employer of the expatriate (applicable where we are dealing with secondments and inter-company transfers);
- Is the expatriate’s package guaranteed net or gross;
- Relocation allowances;
- Residential accommodation provided by the employer is exempt should the accommodation not be the expatriate’s “usual place of residence”;
- What benefit entitlement should the expatriate receive such as car, medical cover, offshore or local retirement funding, home leave, children school costs, security etc.