EXPLAINED: Conditions for Obtaining Tax Exemptions for Automobiles Purchased by Returning Citizens. Long-term expatriate Kenyans return home each year, with others opting to settle down there permanently.
This group of Kenyans carries with them property and other things that they have gained abroad, as one might anticipate.
Cars are among the most popular things that Kenyans who are coming home carry with them. Numerous considerations, including convenience, regulatory variances, cost savings, and sentimental importance, led to this decision.
Thankfully, the Kenya Revenue Authority (KRA) offers tax exemptions, but only under specific guidelines. According to the taxman, a returning resident is a Kenyan citizen who moves from a place outside of Kenya to a location of their choosing within the nation.
According to KRA, residents who are returning are not required to pay import duty, excise duty, VAT, or import declaration form (IDF).
Furthermore, the KRA unequivocally declares that individuals falling into this group are eligible for a motor vehicle exemption as long as they are returning with just one car—buses and minibuses excluded.
“The mentioned goods for exemption must be shipped and imported into Kenya within 90 days of the date arrival of the passenger or such further period not exceeding 360 days from such arrival as the Commissioner may allow,” according to a portion of the regulations.
Some of the conditions that returning citizens must fulfill in order to import their cars into Kenya tax-free are highlighted by NS News.
Requirements
The applicant has to provide documentation of the vehicle’s usage and ownership twelve months prior to return.
The car cannot be older than eight years from the date of production, according to KRA regulations.
In a similar vein, the applicant has to present proof of travel, such as a passport or other valid travel documents.
The KRA also stipulates that the person cannot have benefited from a comparable exemption within the previous four years.
The car must also be imported into the nation within 90 days of the resident’s return, or within an additional 360 days with the Commissioner’s consent.
In addition to the aforementioned conditions, the applicant’s new place of residence must be permanent.
“A person is accorded an exemption on another motor vehicle once every four years and provided that all the duties on the earlier exempted motor vehicle have been paid for,” states the KRA.
Meanwhile, if a spouse is arriving to carry out an assignment with a minimum two-year contract, they may be granted tax exemption on a first-arrival basis even if they are not residents of Kenya.
