Tax exemption for persons with disabilities (PWDs) in Kenya; established under the Persons with Disabilities Act, 2003, and further supported by the Persons with Disabilities (Income Tax Deductions and Exemptions) Order, 2010. This legal framework ensures that individuals with disabilities who earn an income can apply for tax exemptions on their income. The exemption applies to the first Ksh. 150,000 per month or Ksh. 1.8 million per year. This article explores the details of the tax exemption process, requirements, and the benefits for PWDs in Kenya.

For more insights, visit Tax Experts Kenya or contact us at info@taxexperts.co.ke or call 0797 777077 for personalized tax consultations.

Eligibility for Tax Exemption for PWDs

To qualify for the Tax exemption for persons with disabilities (PWDs) in Kenya, the applicant must meet specific criteria. This ensures that only deserving individuals receive the benefit of tax relief. Below are the key conditions:

1. Disability Assessment Report: A comprehensive report from a government gazetted hospital that outlines the nature of the disability.
2. Registration with the National Council for Persons with Disabilities (NCPWD): The applicant must have a disability membership card issued by NCPWD.
3. Income Subject to Tax: The individual should be earning taxable income under the Income Tax Act.
4. Vetting Process: The applicant undergoes vetting by a committee consisting of officials from NCPWD, the Ministry of Health (MOH), and the Kenya Revenue Authority (KRA).

For more details on the eligibility criteria, contact us at info@taxexperts.co.ke or call 0797 777077 for personalized tax consultations..

Application Process for Tax exemption for persons with disabilities (PWDs) in Kenya

The application process for tax exemption for persons with disabilities in Kenya involves several steps. Below is a simplified guide to applying for tax exemption:

Step 1: Fill in the Forms

• Complete Income Tax Exemption Application Forms—Form 1 and Form 2—in duplicate.

Step 2: Attach Required Documents

Applicants must attach the following:

• A copy of the Disability Assessment Report from a government hospital signed by the Director of Medical Services.
• KRA PIN Certificate (which can be obtained from the iTax system).
• A copy of the National ID Card.
• A copy of the NCPWD Disability Card.
• A certified copy of the latest payslip (if applicable).
• An original letter from the employer (if applicable), outlining how the disability impacts the employee’s productivity.
• Tax Compliance Certificate.
• A copy of the expired tax exemption certificate, in case of a renewal.

For professional assistance with filling these forms, contact us at info@taxexperts.co.ke or call 0797 777077.

Step 3: Submit the Application

• Submit the completed forms and the required documents to the National Council for Persons with Disabilities (NCPWD).
• Attend a physical interview or vetting session upon invitation by the NCPWD. The interview is conducted by a joint panel from NCPWD, KRA, and the Director of Medical Services.

Step 4: Application Review by KRA

• Upon successful vetting, NCPWD submits the application to KRA via the iTax system on behalf of the applicant. A system-generated acknowledgement number is emailed to both the applicant and the council.
• KRA reviews the application, and if satisfied with its accuracy, a Tax Exemption Certificate is issued via email.

For more information on the application process, contact us at info@taxexperts.co.ke or call 0797 777077.

Renewal of Tax exemption for persons with disabilities (PWDs) in Kenya

The tax exemption certificate is valid for five years. Applicants must reapply for the exemption upon expiry. The renewal process follows the same procedure as the initial application.

Tax Exemption on Vehicle Importation for PWDs

Persons with disabilities in Kenya are also entitled to tax exemptions on the importation of vehicles. The following are the key requirements:

1. Application Letter: Addressed to the Commissioner of Customs Services.
2. Medical Certificate: Issued by a registered doctor.
3. Recommendation Letter: From either the Association for the Physically Disabled of Kenya or the NCPWD.
4. Driving License: Should have Class “H” endorsement.
5. Proof of Purchase: Include the Bill of Lading and the Invoice/Proforma Invoice for the vehicle.
6. Tax Compliance Certificate: Applicants must present a valid Tax Compliance Certificate or an exemption certificate.

For additional requirements, such as proof of payment and bank statements, reach out to us at info@taxexperts.co.ke.

Benefits of Tax Exemption for PWDs

The tax exemption helps persons with disabilities retain a significant portion of their earnings, enabling them to cater to their personal and medical needs. This legal provision promotes financial independence and ensures that PWDs can live dignified lives without the heavy burden of taxation.

For more personalized assistance with tax exemption applications, vehicle importation, or any other tax-related queries, feel free to contact us at info@taxexperts.co.ke or call 0797 777077.