Every year, Kenyans who have lived abroad for a long time, return to Kenya with some of them choosing to relocate permanently.
As you would expect, this category of Kenyans brings with them property and other valuables acquired in foreign nations.
One of the most common items returning Kenyans bring back home is their vehicles. This choice is motivated by a variety of factors, such as convenience, differences in regulations, savings, and sentimental value.
Fortunately, the Kenya Revenue Authority (KRA) grants tax exemptions but under certain conditions
The taxman defines a returning resident as a Kenyan citizen relocating from a residence outside Kenya to a place of their choice within the country.
KRA specifies that returning residents are exempted from payment of Import Duty, Excise Duty, VAT, and Import Declaration Form (IDF).
Further, KRA categorically states that persons under this category can enjoy a motor vehicle exemption so long as it is one motor vehicle they are bringing back excluding buses and minibuses.
"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," reads part of the regulations.
Kenyans.co.ke highlights some of the requirements returning residents are required to meet before being allowed to import their vehicles to Kenya without paying tax.
Requirements
The applicant must demonstrate proof of ownership and the vehicle's use 12 months before return.
KRA also specifies that the vehicle must not be more than eight years old from the date of manufacture.
Similarly, the applicant must also produce evidence of travel in the form of a passport or appropriate travel documentation.
KRA also requires that the individual must not have enjoyed a similar exemption within the last four years.
The vehicle must also be shipped into the country within ninety days or a further period not exceeding 360 days upon approval by the Commissioner, of the return of the individual resident.
Besides the above requirements, for an exemption to be granted, an applicant must be changing residence permanently.
"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," KRA specifies.
Meanwhile, spouses who are not Kenyan citizens may be accorded tax exemption on a first-arrival basis provided that they are coming to execute an assignment whose contract is not less than two years.
