Doing Business in Kenya - RSM International

partnership in which the husband or the husband and wife jointly own directly orthrough a nominee 12.5% or more of the capital or the voting power.Every employer operating the PAYE system is required to file the following returns:• Monthly Payment PAYE Slip (P 11) - To be stamped by the bank on paymentof PAYE deductions. To be paid by the 9th of the following month or the lastworking day before the 9th where this falls on a Saturday, Sunday or a publicholiday.• PAYE Deduction Summary either to be completed monthly through the KRAOnline website or quarterly manually. The deadline is either the 9th of thefollowing month or quarter, as applicable.• Annual Tax Deduction Card (P 9) to be completed for each employee by the28th February of the following year and given to each employee as a proof ofdeduction of tax at source.4.3.6 Advance, Installment and Final Tax Paymentsand DeadlinesUnder the PAYE rules, all deductions made by an employer (including fringe benefittax payable by the employer) must be paid on or before the 9th day of the followingmonth or the last working day before the 9th where this falls on a Saturday, Sundayor a public holiday.PAYE deducted at source is included in the individual’s self-assessment return anddeducted from the tax liability due on the total income.Where the tax liability for an individual is greater than the tax deducted at source(PAYE and withholding tax) and installment tax, the balance of tax is payable by 30thApril of the following year or the last working day before the 30th where this falls ona Saturday, Sunday or a public holiday.In the case of individuals where the final tax liability (after deduction of taxes atsource) is Shs 40,000 or less, no installment tax is payable. Where installment tax ispayable, the basis of calculation and the due dates for payment are similar to a nonagriculturalcompany (Section 4.2.8).Where tax is chargeable in Kenya on a Kenya citizen in respect of foreign employmentincome or on income earned from an appearance at an artistic performance or asporting event in a foreign country, and that person proves to the satisfaction ofthe Commissioner that he has paid tax in such other country, he shall be entitled toset-off by way of credit that tax paid in the foreign country against the tax payablein Kenya. The amount of set-off cannot exceed the tax liability in Kenya on the saidincome.38DOING BUSINESS IN KENYA