The Income Tax Act, Cap 470 provides that an employer paying emoluments to an employee shall deduct and account for tax (Pay As You Earn) on the payment.

The Persons with Disabilities (Income Tax Deductions and Exemptions) Order, 2010, (Legal Notice No. 36 of 2010), provides that a Person with Disability (PWD) who is registered with the National Council for Persons with Disabilities (the Council), may apply to the Commissioner through the Council for exemption from income tax on the first one hundred and fifty thousand shillings (Kshs. 150,000) of their total income per month or one million eight hundred thousand shillings (Kshs. 1,800,000) per year.

KRA has noted that some employers are still deducting Pay As You Earn from PWDs who have valid income tax exemption certificates without giving relief of the exempt amounts as provided above.

Kenya Revenue Authority (KRA) therefore wishes to guide that:

1. PWDs who are in employment and who have been issued with an income tax exemption certificate should present the certificates to their employers in order to benefit from the exemption.
2. Employers should effect the tax exemption in the payroll to avoid employees having to apply for refund when filing their annual tax returns.
3. Employers can authenticate validity of the exemption certificate presented using the TCC/Exemption/Excise License checker on the i-Tax Portal.
4. PWD with other sources of income, are encouraged to factor in the tax exemption details when filing their annual tax returns.
5. PWD who have retired from employment and whose lump sum payments have been subjected to tax despite holding valid tax exemption certificates, are advised to apply for refund of tax erroneously deducted through the i-Tax system and to attach the supporting documents.

For any clarification or further guidance, visit your nearest Tax Station or reach us through Tel: 254(020) 4 999 999, +254 (0711) 099999/ Email: callcentre@kra.go.ke

Commissioner for Domestic Taxes