May 26, 2024

Income Tax Compliance

In Kenya a person is considered to be a tax resident if they:

  1. have a permanent home in Kenya and were present in Kenya for any period in a particular year of income under consideration, or
  2. do not have a permanent home in Kenya but were:
  • present in Kenya for 183 days or more in thatyear of income, or
  • present in Kenya in that year of income and ineach of the two preceding years of income for periods averaging more than 122 days in each year of income.

In France a person is considered to be a tax resident :

  1. According to International tax treaties
    To determine your residence for tax purposes, international tax treaties establish criteria that take precedence over national legislation.These criteria may vary depending on the tax treaty; therefore, please refer to the tax treaty that is applicable to your specific situation.
  2. If there is no tax treaty between the two countries in question, then each country’s national legislation applies.

France tax agreement with Kenya

Kenya has already signed a Double Tax Agreement “DTA” with France to this effect, signed 04/12/2007 came into force01/11/2021

Kenya also has two bilateral conventions signed with France: one for the administrative assistance in the fight against fraud and another one for the mutual assistance in tax collection.

French tax rule

Unless international tax treaties state otherwise
, you are considered to be a resident of France for tax purposes if you fulfil at least one of the following criteria :

  • Your household (including your spouse, civil partner and/or children) remains in France. This may be the case if you areliving temporarily or for most of the year in another country for professional reasons. If you are single without dependents,then your tax residence is defined as where you live most of the time. or
  • You have a professional activity in France, as an employee or otherwise, unless this activity is secondary. or
  • The center of your economic interests is in France. In other words, France is the location of your main investments, yourplace of business, the location of your professional activities, or the source of the majority of your income.
  • Nevertheless, applying each country’s national legislation can result in your being considered a tax resident of severaldifferent countries. In such cases, in order to determine a single residence for tax purposes, please refer to the tax treaty applicable to your specific situation.

Are you A French fiscal resident having a KRA PIN number?

If you are a French Fiscal Resident as far as your fiscal year “N” is concerned, i.e. calendar year (from the 1st of January of year “N” to the 31st of December of year “N”), and you have not earned any income that can be termed as earned and taxable in Kenya you are taxable only in France but you must to do your tax returns in France and do Nil returns in Kenya.

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