You have one foot in Kenya and the other abroad, but KRA still expects its cut while the other country’s taxman also wants his share. It is a confusing juggling act that can leave you stressed and worried about double taxation.
This guide breaks down the entire process into clear, simple steps you can follow without a headache. In just a few hours of organising your documents, you can have a solid plan to meet both tax obligations smoothly.
What You Need Before You Start
- KRA PIN Certificate: Your personal identification number is non-negotiable for any tax dealings in Kenya. If you do not have one, apply online via the iTax portal at no cost.
- Tax Residency Certificate: This official document from the foreign country proves you are a tax resident there. It is essential to claim relief under a Double Taxation Agreement (DTA).
- Employment or Income Contracts: Gather all letters and contracts showing where your income was earned and taxes deducted. Your former Kenyan employer can provide a P9 form for local earnings.
- Bank Statements: Get statements from both your Kenyan and foreign accounts for the entire tax period. They serve as proof of income flow and tax payments made.
- Passport and Travel Records: You need a clear record of your entry and exit stamps or flight itineraries. This helps determine the number of days spent in each country for residency tests.
Step-by-Step: How to Handle Tax Obligations in Two Countries During Your Transition in Kenya
Follow these six straightforward steps to sort out your dual tax obligations, and you can complete most of the process online within a week.
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Step 1: Determine Your Tax Residency Status
Check the number of days you spent in Kenya versus the other country during the tax year. If you were in Kenya for 183 days or more, KRA considers you a tax resident. Use your passport stamps and flight records to calculate this accurately.
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Step 2: Check for a Double Taxation Agreement (DTA)
Visit the KRA website and confirm if Kenya has a DTA with the country you are moving to or from. This agreement determines which country gets first rights to tax your income. Most common destinations like the UK, UAE, and South Africa have DTAs with Kenya.
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Step 3: File Your Final Kenyan Tax Return on iTax
Log in to the iTax portal and file your final return as a resident or non-resident depending on your status. Select the correct return form — usually ITR 1 for individuals. Do this before the June 30th deadline to avoid penalties.
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Step 4: Apply for Tax Residency Certificate from KRA
Submit an application on the iTax portal under the “Non-Individual” menu to request a Tax Residency Certificate. This document costs KES 1,000 and takes about 5 working days to process. You will need it to claim relief abroad.
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Step 5: Claim Foreign Tax Credit on Your Returns
If you have already paid tax in the foreign country, claim a credit on your Kenyan return to avoid double taxation. Attach proof of payment and the foreign tax assessment as supporting documents on the iTax portal. This step requires careful calculation to get right.
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Step 6: Update Your Address and Contact Details
Go to your iTax profile and update your physical address, postal address, and phone number to reflect your new location. KRA sends all correspondence to this address, so getting it wrong can mean missing important notices and facing penalties.
Common Problems and How to Fix Them
Double Taxation Despite Having a DTA
Many Kenyans find both countries demanding tax on the same income because they did not file for relief properly. The fix is to submit a Form DTA 01 on iTax along with your tax return. Call KRA’s contact centre on 020 4 999 999 to confirm your application is in the right queue.
Forgotten iTax Password or Locked Account
This happens often when you have not logged in for months. Use the “Forgot Password” option on the iTax login page to reset. If your account is locked, visit the nearest KRA service centre in person with your ID to unlock it.
Missing Foreign Tax Documents
You cannot claim a foreign tax credit without proof of payment from the other country. Contact the foreign tax authority’s online portal to request duplicate tax assessment letters. Some countries like the UK allow you to download these instantly from your HMRC account.
Penalties for Late Filing While Abroad
KRA charges a penalty of KES 5,000 for late filing even if you live overseas. File online through iTax from anywhere in the world. Set a calendar reminder for every June to avoid forgetting the deadline while adjusting to life in a new country.
Cost and Timeline for How to Handle Tax Obligations in Two Countries During Your Transition in Kenya
Most of the process is free to initiate online, but there are a few official fees you must budget for. The costs are standard across all counties since KRA operates nationally.
| Item | Cost (KES) | Timeline |
|---|---|---|
| KRA PIN Certificate | Free | 1-2 working days online |
| Tax Residency Certificate | 1,000 | 5 working days |
| Form DTA 01 (Relief Application) | Free | Instant submission on iTax |
| Late Filing Penalty | 5,000 | Applied immediately after deadline |
| KRA Agent or Consultant Fees | 2,000 – 5,000 | Varies by agent |
One hidden cost many Kenyans overlook is the KES 100 convenience fee charged by mobile money agents when you pay KRA penalties via M-Pesa. Also, if you need certified copies of your passport pages, budget about KES 500 per document at a local law firm.
The Bottom Line
Handling tax in two countries does not have to be a headache if you stay organised and use the iTax portal correctly. The single most important thing is determining your tax residency status first, because everything else flows from that answer.
If you found this guide helpful, share it with another Kenyan navigating the same transition. Drop your question in the comments below and we will point you to the right resource.
Frequently Asked Questions: How to Handle Tax Obligations in Two Countries During Your Transition in Kenya
Do I need to pay tax in Kenya if I am already paying tax abroad?
Not necessarily. If Kenya has a Double Taxation Agreement with that country, you can claim relief and avoid paying tax twice on the same income.
You must file your Kenyan return and submit Form DTA 01 on iTax to prove you already paid tax elsewhere.
What happens if I miss the June 30th filing deadline while living abroad?
KRA will charge a late filing penalty of KES 5,000 automatically on your iTax account regardless of where you live in the world.
You can still file your return online from anywhere and request the penalty to be waived if you have a valid reason like illness or travel delays.
Can I file my Kenyan taxes without a local phone number or Kenyan SIM card?
Yes, you can log into iTax from any country using your email and password. You do not need a Kenyan SIM to access the portal.
However, ensure your iTax profile has an active email address because KRA sends all notifications and receipts there instead of SMS.
How long does it take to get a Tax Residency Certificate from KRA?
The official processing time is 5 working days after you submit the application and pay the KES 1,000 fee on iTax.
Delays happen if your application has errors or missing documents, so double-check everything before you submit to avoid waiting longer.
Which foreign countries have Double Taxation Agreements with Kenya?
Kenya has active DTAs with over 25 countries including the UK, UAE, South Africa, Canada, India, Germany, and the Netherlands.
Visit the KRA website and check the DTA list under the “International Taxation” section to confirm if your specific country is covered.