Planning a move back to Kenya? Learn about the tax exemptions for returning residents, including duty-free status for personal and household effects and one motor vehicle. Understand the rules for vehicle eligibility, required documents, and important timelines to ensure a smooth transition.
Documentation:
- Passport: A valid passport serves as proof of identity and residence abroad.
- Proof of Ownership: For vehicles, you’ll need proof of ownership for at least 12 months, such as registration documents.
- Commercial/Pro Forma Invoices: These are required from the exporting firm for customs purposes.
- Certificate of Conformity (CoC): For certain products, a CoC from a PVoC agent is mandatory.
- Bill of Lading: This document tracks the shipment of your goods.
- KRA PIN: Your Kenya Revenue Authority Personal Identification Number is essential for customs processing.
Logistic For Returning
When selecting a logistics company in Kenya, it is essential to take into account several crucial aspects to guarantee seamless and effective shipping. Primarily, the nature of your cargo-whether it is transported via air, sea, or road-will determine the most suitable logistics provider, since each transportation method comes with distinct features and cost considerations.
Customs and PVoC Agents:
- Engage with customs agents to help with import declaration forms and customs entries.
- Work with authorized agents for pre-shipment inspections and to obtain a Certificate of Conformity.
Specific Goods (Vehicles):
- Vehicles must be less than 8 years old from the year of first registration.
- You may need to provide proof of disposal of a previous vehicle if you are importing a replacement.
Tax Exemptions:
Kenyan returning residents may be eligible for tax exemptions as part of the government’s efforts to encourage the reintegration of nationals who have lived abroad. However, to qualify for these exemptions, comprehensive documentation is essential to verify eligibility. This documentation typically includes proof of residency abroad, details of income earned outside Kenya, and evidence supporting the duration and nature of the stay outside the country. Providing accurate and complete records ensures a smooth application process and helps the tax authorities assess claims fairly. Without such documentation, returning residents may face delays or disqualification from receiving applicable tax benefits. Therefore, it is crucial for Kenyan returnees to prepare and submit all required documents to take full advantage of available tax exemptions.
Steps to Take:
- Contact the Kenya Revenue Authority (KRA) to understand current regulations and requirements for returning residents.
- Identify and engage with Pre-shipment Verification of Conformity (PVoC) agents if you are importing regulated goods, such as vehicles.
- Contact shipping or freight logistics companies that can assist with tracking and transporting your goods to Kenya.
- Gather all required documents before starting the import process to ensure a smooth experience.
When choosing a Kenyan logistics company, it is important to consider several key factors to ensure smooth and efficient shipping. First, the type of cargo you are transporting-whether by air, sea, or road-will influence the best logistics provider, as each mode has different capabilities and cost implications. Additionally, if your shipment requires storage, the availability and quality of warehousing facilities are crucial to protect your goods and manage inventory effectively. Finally, given Kenya’s position as a major trade hub, expertise in customs clearance is essential to avoid delays and additional costs, making it important to select a logistics company with a strong track record in navigating regulatory requirements. By carefully evaluating these factors, businesses can find a reliable partner that meets their specific shipping needs.
5 Helpful Links
- What you need to declare upon arrival in Kenya – https://www.nairobi-airport.com/en/customs_nairobi_airport.php
- Who is exempted from paying import duty in Kenya? – https://www.kenyaembassydoha.com/wp-content/uploads/2021/06/importdutyexemptions.pdf
- How to import – https://www.kra.go.ke/individual/importing/learn-about-importation/how-to-import
- What is the import limit for Kenya? – https://katakenya.org/cabinet-endorses-plan-to-raise-duty-free-import-limit/#:~:text=The%20Cabinet%20has%20endorsed%20a,exceeding%20the%20Sh50%2C000%20threshold.
- What is prohibited to bring into Kenya? – https://evisa-to-kenya.info/news/understanding-kenya-customs-regulations/