Reference no: EM133556125

Question

For the year of income,2021, Mr. Khosa earned an equivalent of ksh 22,000,000 from employment in South Africa where he paid tax equivalent to ksh 3,000,000. In Kenya, he earned consultancy fees of kshs 7,500,000 and employment income of kshs 4,000,000(PAYE 1000000). His Kenyan employer has provided his family with accommodation where rent paid is kshs 420,00 per month.Mr Xhosa also contributed to a registered pension scheme kshs 700,000 in the year 2021 and paid mortgage interest of kshs 2250000 in the year. he also paid insurance premiums of kshs620000 in the year 2017 for his child's education. Mr. Xhosa has a work permit in Kenya, and he has lived and worked in Kenya for the last 3 years. He intends on living in Kenya for the rest of his life, having bought a house and settled in Kenya. However, he still has a home in South Africa and his family visits South Africa at least thrice a year. Given the above, kindly explain in which country you believe Mr.Xhosa would be taxed? Why? Would Mr.Xhosa be allowed to take a tax credit? Which country would provide the tax credit and why? Does it make any difference if the income.