Entity being taxed. The Act does not define a person to be a natural or individual person. Companies as defined in section 2.
Trusts- although some trust income is exempted from income tax, some income may be exempted.

Section 3(3) excludes partnerships from the definition of a person but is useful as conduits of information relating to income and expenses of partnership as apportioned to each of the partners for tax purposes.
Clubs may also be persons unless three quarters of gross receipts are not from members.

Commissioner of Income Tax vs. Law Society of Kenya 
It was argued that it was exempted from taxation. It was held on appeal that it was not since it did not have power to refuse admission or to refuse those who qualify as advocates deemed to be carrying on business and therefore liable to tax.

Section 21 of the Income Tax Act allows a body of persons including those who may be getting more than three quarter of revenue from members if they elect in writing to be treated as carrying on a business.

Resident or Non-resident
Section 3(1) deals with residency and is defined under section 2.

a) A resident individual is one who has a permanent home in Kenya and in addition was  
    Present in Kenya for any period in that year of income.
b) Who has no permanent home in Kenya but was present in Kenya:
-For a period or periods amounting to 183 days or more in aggregate in that year of
-Was present in Kenya in that year of income and in each of the two preceding years
  Of income of periods averaging more than 122 days in each year of income.


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