Requirements for Exemption from Income Tax for charitable religious organisations

Requirements for Exemption from Income Tax  for charitable religious organisations

Exemption from income tax by religious and charitable organisations is provided for under paragraph 10 of the First Schedule to the Income Tax Act, chapter 470, of the laws of Kenya.

The application should be addressed to Kenya Revenue Authority, the Commissioner for Domestic Taxes, but is usually processed through the regional KRA office in the jurisdiction where the applicant is based.

There is no formal application form that is required to be filled. Thus, the application should be made in form of a letter addressed as appropriate and detailing that the applicant has made the requisite criteria for exemption as provided for in the said provisions of the Income Tax Act.   

The application should be accompanied by the following documents:-

1. Certified copy of Trust Deed /Constitution of the applicant.
2. Certified copy of Certificate of Incorporation/ Registration  of the applicant;
3. Certified true copy of the PIN Certificate of the applicant;
4.  A resolution of the applicant resolving to apply for income tax exemption;
5. A profile of the applicant detailing its charitable activities and how these benefit the residents of Kenya;
6. Recommendation letter from relevant  regional religious leader or Bishop in support of our application;
7. Letter from the Provincial Administration (D.C., D.O., or local Chief), evidencing the existence of the applicant and its activities;  
8. In case of a renewal, copy of the previous Certificate of Exemption;
9. Copies of the latest financial statements (profits and loss accounts/income and expenditure statements and balance sheet) of the applicant;
10. Letter of authorization the agent to submit the application on behalf of the applicant and deal with all incidental correspondence.  

 For more information or assistance relating to tax exemption for charitable organisations, please contact me via mainacy@gmail.com 

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