Answer to Question #266571 in Financial Math for JAMES

Question

a) Discuss the terms residence and domicile as used in taxation

b) What is the importance of residence in payment of taxes?

Answer 1

a.

A residence is a place where you can live full- or part-time. Your domicile is your legal address, and it is in the state where you pay your taxes.

b.

Individuals' tax residency is crucial in deciding whether and how their personal or business income is taxable in Kenya under the Income Tax Act.