Paying 15% Capital Gains Tax (CGT) on KRA Property Sales
Capital Gains Tax (CGT) is a tax levied on the net profit realized upon the transfer or sale of property, land, shares, or select capital assets in Kenya. CGT must be settled before property transfers are officially processed.
KRA CGT Regulations:
- The Tax Rate: The CGT rate is flat at 15% of the net gain (Selling Price minus Acquisition Costs and improvements).
- Exemptions: Transfers of private residential property by an individual where they have lived for at least three years, or transfer of land valued under KES 3 million by an individual, are fully exempt.
- Filing Process: Declared on iTax under the CGT obligation, paid on or before the transfer of property documents.