Home BUSINESS NEWS Japanese in Kenya Exempted from Paying Income Tax

Japanese in Kenya Exempted from Paying Income Tax

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Japanese in Kenya Exempted from Paying Income Tax

The National Assembly on Wednesday passed a motion seeking to exempt Japanese companies, employees, and consultants from paying income tax.

This came after the Parliamentary Committee on Delegated Legislation tabled a report recommending the exemption of Japanese workers and companies from income tax.

The committee’s chair William Kamket, who tabled the motion, said the exemptions were agreed upon between the Kenyan government and Japan.

“The committee recommends that the house approve the exemption from income tax from Japanese companies, Japanese consultants, and Japanese employees in accordance with section 62 of the income tax Act (cap 470),” said Kamket.

The motion was seconded by the committee’s vice-chairperson Muriuki Njagagua, who noted that the Japanese government is seeking an exemption of income tax for its citizens for the work being done to benefit the people of Kenya.

Njagagua argued that the benefits that the country will get from the Japanese companies in Kenya are much higher compared to the income tax.

“Basically, this is for the money that they give to Kenya as grants or loans…they are saying that we have brought this kind of money, exempt our people, our companies, and consultants from paying Income Tax in Kenya,” Njagagua said.

Japan pledged to give Kenya Sh36.5 billion for the 12 months to June next year.

The funds will be used to build roads, ports, and bridges, as well as for budgetary support by the National Treasury.

 

12 COMMENTS

  1. There is nothing like a free…
    There is nothing like a free lunch and Asians are some of the meanest beings on this planet if they cannot provide the aid without paying taxes they need to keep it. There are no more special than the Chinese and frankly there appears to be a saturation of foreign consultants purportedly providing services the “locals” cannot provide which we all know is hogwash. Buy Kenyan build Kenya

  2. “The funds will be used to…
    “The funds will be used to build roads, ports, and…” I hope so, but the issue of tax exemption doesn’t add up at all. Are our leaders stupid, or what?

  3. If you set such a precedent…
    If you set such a precedent all other nations will follow suit. Are you saying that a Kenyan employee working along side a Japanese employee pays income tax while a Japanese employee pays nothing? The house should not approve such an exemption. If the Japanese companies claim that they are paying their employees from the money they give to the Kenya government as a loan, then all they have to do is give hefty salaries to their Japanese employees there by taking back all the money we have borrowed and have to pay back with interest. That is fundamentally unfair. This is some form of corruption. They provide jobs to their people using us -and then turn around and say they are helping Kenyans. What is wrong with us? After almost 60 years of independence, a strong young energetic population and we cannot make a road ourselves?

  4. Shame on those who have been…
    Shame on those who have been bribed to ask for such exemption. Those who are seeking such exemption and their collaborators are the modern day enemies of Kenya.
    Kenya does not need first world roads,ports and bridges. We will build our own roads that are not first class but are our own.
    If you can’t pay taxes while in Kenya, take your money back and loan it to your people in Japan. By bringing Japanese companies and Japanese people to work in Kenya, you are just using us to provide employment for your people.
    Kenya is not getting free money. Those loans will be paid by us and posterity.
    “Debt bondage” is the most common form of contemporary slavery, according to the London- based NGO Anti-slavery International, which says ” a person becomes a bonded labourer when their labour is demanded ( which is what the loan shacks are asking for in Kenya)as a means of repayment for loan”
    There is a modern day ” Scramble for Africa” and the loan shacks are dangling money demanding that Africans remain slaves of the west.
    No one in their right mind should grant such an exemption.
    Time is ripe for Kenyans and Africans to get off the path of perpetual slavery!!
    Wake up Kenyans, say no to any more loans,aid or grants!!

  5. I need an exemption too…
    I need an exemption too.
    Citizens should be the first to enjoy exemptions from taxes before we exempt aliens.

  6. If you set such a precedent…
    If you set such a precedent all other nations will follow suit. Are you saying that a Kenyan employee working along side a Japanese employee pays income tax while a Japanese employee pays nothing? The house should not approve such an exemption. If the Japanese companies claim that they are paying their employees from the money they give to the Kenya government as a loan, then all they have to do is give hefty salaries to their Japanese employees there by taking back all the money we have borrowed and have to pay back with interest. That is fundamentally unfair. This is some form of corruption. They provide jobs to their people using us -and then turn around and say they are helping Kenyans. What is wrong with us? After almost 60 years of independence, a strong young energetic population and we cannot make a road ourselves?

    • We can make some beautiful…
      We can make some beautiful roads like the ones Mr Nyoro makes. The only problems we have is shortcuts since the likes of Nyoro Kenyans engineers aim is to finish the projects with as little input as possible while maximizing the profits. Just take a look of road projects he did a few years ago and assess the status of the so called projects. At least Chinese project are better off.

  7. We understand about tax…
    We understand about tax exemptions, but with caps.
    For 36 billion KSH??
    UJINGA TUTAWACHA LINI?
    This shows how UHURU and GOONS are capable of sustaining the 2 billion KSH stolen on daily basis….
    Seriously Kenyans,we need to wake up.

  8. If they are giving Kenya…
    If they are giving Kenya Grants then giving a Tax break is not a big deal but if they are giving Kenya Loans and then it is stupid for Kenya to give them a Tax Break. The Big question would be whether the interest is lower than the average interest for international Loans.

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