ADVOKS GLOBAL · KENYA
Income Tax Act
36. Deduction of tax from annuities, etc., paid under a will, etc.
Edition: 2026-07-01 · In force
36. Deduction of tax from annuities, etc., paid under a will, etc.
(1)The trustees of a will or settlement shall, upon payment of any annuity under such will or settlement, deduct therefrom tax at the rate paid or payable on the income out of which such annuity is payable:Provided that–(i)no deduction of tax shall be made from such part of an annuity as such is paid out of income in respect of which no tax is paid or payable;(ii)any annuity directed to be paid free of tax shall be paid without deduction of tax, and any sums paid by the trustees to the annuitant to meet his liability to tax on the annuity shall also be paid without deduction of tax and the trustees shall be entitled to repayment of the tax paid by deduction or otherwise on such an amount of the income of the trust as is equal to the total of the annuity and the sums so paid;(iii)the Commissioner may authorize the trustees on payment of any annuity other than an annuity directed to be paid free of tax to deduct,from the amount of such annuity, tax at a rate lower than the rate paid or payable on the income, or no tax, and thereupon the trustees shall deduct from the amount of any such annuity so paid tax at the lower rate, or no tax, as the case may be.(2)For the purposes of this section, where an annuity is not payable out of income of specified assets, it shall be deemed to be payable out of income liable to tax under this Act to the extent to which such income is available for the payment thereof.(3)Where section 11(2)(a) applies the trustee shall furnish each person to whom or on whose behalf amounts are paid in a year of income with a certificate setting out the gross amount of the payments, the amount of tax appropriate thereto, and the net amount so paid in such year of income.