Income abroad and KRA Taxes.

Wadau…asking for my buddy since i have no knowledge on this topic. My buddy works and pays taxes abroad. Is she supposed to declare and pay taxes to KRA on foreign income? Or she needs to file Nil. Also say she wants to buy a piece of land or a car. Would she raise a red flag to KRA for such a huge transaction while she shows no income in kenya? Sound minds only pliz.

You are not obliged to pay taxes in the country you have not made money from.

So she can file Nil to KRA?

Yep. If she’s not made money in Kenya.

Swafiii. Hivi ndivyo nitakuwa na avoid taxes. Nafungua biz Kwa border town. Halafu na file nil since I will be living in the other country.

But you will have to pay taxes in that country

I file nil in Kenya.
I file PAYE in my country of residence and nil in Kenya…
Double taxation if you file both unless its a rental property based in Kenya.

Tell her to visit a tax consultant for some advice. Some countries like Canada have Tax Agreements with Kenya to avoid double taxation…others like US don’t.

I thought you are supposed to file in Kenya too then apply for tax credits from kra?

Nope huko ni kualternate. Wakikuja na Rudi Kenya.

Best case scenario
Fill NIL returns pale KRA

Register as volunteering and also pay nil in the country you are working in . I know this is possible in African countries , not the West .
Najua wadau who are paying nothing at all in both countries

I read somewhere that Kenyan government signed agreement with some EU countries on tax credits. I don’t know if it works but I never bothered.

In most European countries you get a tax code when you are born or applying for residence. You need that code to have a bank account, a phone contract, a visit to the doctor, get a job,get help from government… Hence it is almost impossible to evade tax unless you have an illegal business that accepts cash only…

They track your spending and how you live by your tax code. In the end of each year you have to declare your assets to get a value that will determine how much you pay for your kids in school, how much you pay for health, among others.

European expatriates working in Kenya and most African countries claim they are here on volunteering basis and pay nothing at all to Kenya and back to their countries.

Very lucky mofos I can say . And the way they are paid top dollar

How do you get paid as a volunteer? Ama unalipwa as untaxable allowances?

The salaries are claimed as allowances and not official pay.
Full time : volunteering
No salary.
Allowances lakini mambo bad

Allowances are taxable too and you can’t claim to volunteer if you are not in a non-charitable organisation.

My experiences I have seen are mostly with NGO jobs.
Hawalipi hata shilling

What if you are living in Kenya and earning money from other countries doing things like article writing? are you still obliged to pay tax

Jaba analysis. That you’d think an expatriate earning quite a high figure can evade taxman isquite uninformed. Your employer will oversee the process from their country and disclose the figures to the relevant side