Tax Exemption for PWDs

The Persons with Disabilities Act  2003 and The Persons with Disabilities (Income Tax Deductions and Exemptions) Order 2010, forms the legal basis for granting of Income Tax Exemption for  persons with disability.

The order provides that persons with disabilities who are in receipt of an income may apply to the Cabinet Secretary responsible for Finance for exemption from income tax and any other levies on such income. This exemption applies on the first Ksh. 150, 000 per month or Ksh 1.8 M per annum.

To qualify for tax exemption under the cited provisions, the applicant must meet the following criteria :

• Have a disability assessment report that details the nature of disability from a government gazetted hospital.
• Be registered with the Council for Persons with Disabilities (NCPWDs) and in possession of a disability membership card
• Be in receipt of income that is subject of tax under the Income Tax Act
• Undergo vetting by the committee comprising of officials from NCPWD, MOH and KRA and obtain recommendation

Application Process

• Fill the Income Tax Exemption Application Form – Form 1 & 2 in duplicate. 

• Attach the following documents:

1. Copy of Disability Assessment Report from the government gazetted hospitals with the Director of Medical Services’ signature and remarks from AFYA HOUSE LG 29.
2. KRA Pin Certificate (obtained from iTax)
3. Copy of National Identification Card
4. Copy of NCPWD Disability Card
5. A certified copy of the latest pay slip where applicable
6. Original letter from employer where applicable, clearly stating the nature of disability and how it affects the employees’ productivity at place of work.
7. Tax Compliance Certificate.
8. A copy of the expired certificate in the event the application is a renewal case.

• Submit application and documents in 1 & 2 above to the National Council of Persons with Disability (NCPWD).
• Attend  a physical interview / vetting upon invitation by the NCPWD, which is conducted by a joint panel from NCPWD, KRA & Director of Medical Services.
• Upon recommendation of the application by the joint panel, the application is submitted to KRA  through the  iTax system by  NCPWD, on behalf of the applicant.
• Upon successful upload of the application ,a system generated acknowledgement number is  emailed to both the applicant and the Council for fast-tracking purposes
• The application undergoes further review and processing at KRA. If the Commissioner is  satisfied with the accuracy and completeness of the application, a tax exemption certificate is issued to the applicant via their registered email. The exemption certificate is valid for a period of five years.
• Where a recommendation is rejected, both the applicant and the Council are notified via email, citing the reasons for the rejection.
• The person has to reapply upon expiry of the five years validity period.
• Application for renewal is subject to the same process.

Kenya Disabled Persons Car Import Tax Exemption Requirements

• Application letter addressed to the commissioner of customs services

• Original medical certificate from a registered doctor

• Original letter of recommendation from the Association for the physically Disabled Of Kenya or The National Council Of Persons With Disabilities

• Copy of driving license with class ?H? endorsement

• Bill of lading for the vehicle

• Invoice/proforma invoice for the vehicle

• Tax compliance certificate/Tax exemption certificate

• Cash remittance transfer slips used to pay for the vehicle (i.e. proof that payment for the vehicle was made by the applicant)

• Bank statement for the last six months

• Test drive in using the modified vehicle (specially designed to suit the nature of the disability) in the presence of a customs officer

• Where the applicant has previously been granted exemption on a vehicle under this category, subsequent exemption shall not apply unless such person has used the motor vehicle so imported on exemption for a period of 4 years and tax has been paid for the vehicle upon which exemption had been previously granted