The document you are viewing is the Income Tax Act, Chapter 470 (Cap. 470), updated to include amendments from the Finance Act 2018 and the Tax Laws (Amendment) Act 2018. The Act officially commenced on January 1, 1974.The Act's purpose is to "make provision for the charge, assessment and collection of income tax; for the ascertainment of the income to be charged; for the administrative and general provisions relating thereto; and for matters incidental to and connected with the foregoing".Structure of the ActThe document is organized into fourteen Parts and several Schedules, as outlined in the Arrangement of Sections:

• Part I: Preliminary (Sections 1-2) - Covers the short title, commencement, and interpretation of terms.

• Part II: Imposition of Income Tax (Sections 3-12C) - Specifies the income chargeable to tax, including provisions for instalment tax, advance tax, fringe benefit tax, and turnover tax.

• Part III: Exemption from Tax (Sections 13-14) - Details income and interest on government loans that are exempt from tax.

• Part IV: Ascertainment of Total Income (Sections 15-28) - Outlines allowable and non-allowable deductions and the method for calculating total income.

• Part V: Personal Reliefs (Sections 29-33) - Details general, personal, and insurance reliefs.

• Part VI through Part XIV cover various administrative and enforcement aspects, including Rates of Tax, Persons Assessable, Returns and Notices, Assessments, Objections and Appeals, Collection and Recovery of Tax, Offences and Penalties, Administration, and Miscellaneous Provisions.

Key Provisions on the Imposition of Tax (Part II)Income tax is charged upon all income of a person (resident or non-resident) that accrued in or was derived from Kenya. Chargeable income includes:

• Gains or profits from a business, employment or services rendered, or a right granted for the use or occupation of property.

• Dividends or interest.

• A pension, charge, annuity, and withdrawals from a registered pension fund, provident fund, individual retirement fund, or registered home ownership savings plan.

• Net gains from the disposal of an interest in a person, provided the interest derives twenty percent or more of its value, directly or indirectly, from immovable property in Kenya.

• Natural resource income.