Wazua
»
Market
»
Pennywise
»
Kenya Tax Burden
Rank: New-farer Joined: 2/19/2011 Posts: 14 Location: Nairobi
|
Hello Wazuans,
I am desperate to reduce my taxes and wonder if anyone has tips on reducing their income tax. I have taken out an education policy and a HOSP (Home Ownership Savings Plan)but the saving is marginal. I know taxes are certain in life but wonder if you guys have other ideas on trimming your payables to KRA?
I am employed and run a small biz on the side. Inflation is biting hard and I am beginning to feel the heat in my pocket.
Again, there was talk last year about widening the tax bands, is that something we can lobby for? methinks taxing anyone earning less than 20K is immoral and for people earning less than 50K to be at the top rate is just not fair?
Any thoughts, ideas?
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
Are you paying tax on income from the side business? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: New-farer Joined: 2/19/2011 Posts: 14 Location: Nairobi
|
Just income tax. The business is still too young and cant even meet the minimum threshhold for turnover tax. I am especially keen on reducing my PAYE.
|
|
|
Rank: Elder Joined: 2/16/2007 Posts: 2,114
|
Get a mortgage and hopefully KRA will give you a refund on the tax paid on the interest paid up to a maximum of Kshs 150,000
|
|
|
Rank: New-farer Joined: 2/19/2011 Posts: 14 Location: Nairobi
|
Seems like there are'nt many routes to escape the taxman.
|
|
|
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
|
Increase your pension contribution to the maximum allowed by law (I think it's 20k) you'll get some good tax relief.
BBI will solve it :)
|
|
|
Rank: Member Joined: 1/24/2008 Posts: 479
|
just resign..and say you can't take any more Every man is guilty of all the good he didn't do-
Voltaire
|
|
|
Rank: Veteran Joined: 12/23/2010 Posts: 1,229
|
|
|
|
Rank: Member Joined: 11/14/2006 Posts: 28
|
Its usually easier to enjoy the tax benefit if you work for a company that can remit the insurance payments direct to the insurer and give you relief month on month. Coz otherwise you will have to wait till end of year, submit your tax returns and wait another looong while to get the refunds.
|
|
|
Rank: New-farer Joined: 3/6/2014 Posts: 21
|
Did you finally get an answer to this Chumvi? I would like to hear how others are trimming their tax exposure.
|
|
|
Rank: Member Joined: 10/29/2007 Posts: 76
|
The problem in Kenya is not just about the high taxes, it is how these collected taxes are utilized. There are countries where the tax rate is 50% in comparison to Kenya's 30% but the citizens declare everything they earn even in cash from other countries.. because the Government uses the collected money to provide QUALITY and free education, health services, excellent infrastructure, security, etc.. can you imagine a situation where such are provided free of charge? I would not mind paying 50% if that was done too.. Kenya is a country that simply requires serious prayers and fasting! Scandals everywhere!
|
|
|
Rank: Elder Joined: 2/16/2007 Posts: 2,114
|
What about this scenario:
A pensioner owns and lives in a property in Nairobi and he has no other source of income apart from his pension.Is he supposed to save his pension to pay council rates or move to the SQ and rent the main house so as to have money to pay these taxes?
What if he still has kids in school?Pensioners should be exempted from some of these taxes..
|
|
|
Rank: Elder Joined: 6/20/2008 Posts: 6,274 Location: Kenya
|
@ChumviMacho, let us start a campaign to implement Sharia Law. It requires that I pay 2.5% and you 2.5% p.a. from your net income. It's quite unfortunate that people pay in tunes of 30% and above only for these govts to have good life, and still we pay to get health services, water, electricity etc... What is the tax for then!
|
|
|
Rank: Member Joined: 5/6/2011 Posts: 391 Location: Nairobi
|
mwania wrote:The problem in Kenya is not just about the high taxes, it is how these collected taxes are utilized. There are countries where the tax rate is 50% in comparison to Kenya's 30% but the citizens declare everything they earn even in cash from other countries.. because the Government uses the collected money to provide QUALITY and free education, health services, excellent infrastructure, security, etc.. can you imagine a situation where such are provided free of charge? I would not mind paying 50% if that was done too.. Kenya is a country that simply requires serious prayers and fasting! Scandals everywhere!
Exactly. "You can't have everything. Where would you put it?" - Stephen Wright
|
|
|
Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
|
ChumviMacho wrote:Hello Wazuans,
I am desperate to reduce my taxes and wonder if anyone has tips on reducing their income tax. I have taken out an education policy and a HOSP (Home Ownership Savings Plan)but the saving is marginal. I know taxes are certain in life but wonder if you guys have other ideas on trimming your payables to KRA?
I am employed and run a small biz on the side. Inflation is biting hard and I am beginning to feel the heat in my pocket.
Again, there was talk last year about widening the tax bands, is that something we can lobby for? methinks taxing anyone earning less than 20K is immoral and for people earning less than 50K to be at the top rate is just not fair?
Any thoughts, ideas? Register a company,then ask your current employer to employ you as a company and not as an individual.  If Obiero did it, Who Am I?
|
|
|
Rank: Elder Joined: 5/26/2009 Posts: 1,793
|
Swenani wrote:ChumviMacho wrote:Hello Wazuans,
I am desperate to reduce my taxes and wonder if anyone has tips on reducing their income tax. I have taken out an education policy and a HOSP (Home Ownership Savings Plan)but the saving is marginal. I know taxes are certain in life but wonder if you guys have other ideas on trimming your payables to KRA?
I am employed and run a small biz on the side. Inflation is biting hard and I am beginning to feel the heat in my pocket.
Again, there was talk last year about widening the tax bands, is that something we can lobby for? methinks taxing anyone earning less than 20K is immoral and for people earning less than 50K to be at the top rate is just not fair?
Any thoughts, ideas? Register a company,then ask your current employer to employ you as a company and not as an individual. Brilliant answer.
|
|
|
Rank: Veteran Joined: 1/3/2014 Posts: 1,063
|
kenmac wrote:Swenani wrote:ChumviMacho wrote:Hello Wazuans,
I am desperate to reduce my taxes and wonder if anyone has tips on reducing their income tax. I have taken out an education policy and a HOSP (Home Ownership Savings Plan)but the saving is marginal. I know taxes are certain in life but wonder if you guys have other ideas on trimming your payables to KRA?
I am employed and run a small biz on the side. Inflation is biting hard and I am beginning to feel the heat in my pocket.
Again, there was talk last year about widening the tax bands, is that something we can lobby for? methinks taxing anyone earning less than 20K is immoral and for people earning less than 50K to be at the top rate is just not fair?
Any thoughts, ideas? Register a company,then ask your current employer to employ you as a company and not as an individual. Brilliant answer. Will you not pay the corporate tax @30% which will be higher than the graduated scale rates? Consistency is better than intensity
|
|
|
Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
|
PeterReborn wrote:kenmac wrote:Swenani wrote:ChumviMacho wrote:Hello Wazuans,
I am desperate to reduce my taxes and wonder if anyone has tips on reducing their income tax. I have taken out an education policy and a HOSP (Home Ownership Savings Plan)but the saving is marginal. I know taxes are certain in life but wonder if you guys have other ideas on trimming your payables to KRA?
I am employed and run a small biz on the side. Inflation is biting hard and I am beginning to feel the heat in my pocket.
Again, there was talk last year about widening the tax bands, is that something we can lobby for? methinks taxing anyone earning less than 20K is immoral and for people earning less than 50K to be at the top rate is just not fair?
Any thoughts, ideas? Register a company,then ask your current employer to employ you as a company and not as an individual. Brilliant answer. Will you not pay the corporate tax @30% which will be higher than the graduated scale rates? When your register a company,you can be able to deduct the following expenses creatively before taxation 1.Fuel /transport costs 2.WTA on your house(Register your house in the company's name and call it office premises) 3.Meals for your and your family(your can call it employee meals or employee welfare) 4.House keeping expenses(Office maintenance) 5.Savings 6.House helps salary(You can call it wages to casuals etc. 7.Buy a company car and charge WTA. 8.Charge WTA on your company(of course its yours) electronics(TV;s phones, computers etc), furniture etc Deduct everything and declare a loss to KRA If Obiero did it, Who Am I?
|
|
|
Rank: Veteran Joined: 1/3/2014 Posts: 1,063
|
Swenani wrote:PeterReborn wrote:kenmac wrote:Swenani wrote:ChumviMacho wrote:Hello Wazuans,
I am desperate to reduce my taxes and wonder if anyone has tips on reducing their income tax. I have taken out an education policy and a HOSP (Home Ownership Savings Plan)but the saving is marginal. I know taxes are certain in life but wonder if you guys have other ideas on trimming your payables to KRA?
I am employed and run a small biz on the side. Inflation is biting hard and I am beginning to feel the heat in my pocket.
Again, there was talk last year about widening the tax bands, is that something we can lobby for? methinks taxing anyone earning less than 20K is immoral and for people earning less than 50K to be at the top rate is just not fair?
Any thoughts, ideas? Register a company,then ask your current employer to employ you as a company and not as an individual. Brilliant answer. Will you not pay the corporate tax @30% which will be higher than the graduated scale rates? When your register a company,you can be able to deduct the following expenses creatively before taxation 1.Fuel /transport costs 2.WTA on your house(Register your house in the company's name and call it office premises) 3.Meals for your and your family(your can call it employee meals or employee welfare) 4.House keeping expenses(Office maintenance) 5.Savings 6.House helps salary(You can call it wages to casuals etc. 7.Buy a company car and charge WTA. 8.Charge WTA on your company(of course its yours) electronics(TV;s phones, computers etc), furniture etc Deduct everything and declare a loss to KRA  You are a genius. Consistency is better than intensity
|
|
|
Rank: Elder Joined: 6/20/2008 Posts: 6,274 Location: Kenya
|
PeterReborn wrote:Swenani wrote:PeterReborn wrote:kenmac wrote:Swenani wrote:ChumviMacho wrote:Hello Wazuans,
I am desperate to reduce my taxes and wonder if anyone has tips on reducing their income tax. I have taken out an education policy and a HOSP (Home Ownership Savings Plan)but the saving is marginal. I know taxes are certain in life but wonder if you guys have other ideas on trimming your payables to KRA?
I am employed and run a small biz on the side. Inflation is biting hard and I am beginning to feel the heat in my pocket.
Again, there was talk last year about widening the tax bands, is that something we can lobby for? methinks taxing anyone earning less than 20K is immoral and for people earning less than 50K to be at the top rate is just not fair?
Any thoughts, ideas? Register a company,then ask your current employer to employ you as a company and not as an individual. Brilliant answer. Will you not pay the corporate tax @30% which will be higher than the graduated scale rates? When your register a company,you can be able to deduct the following expenses creatively before taxation 1.Fuel /transport costs 2.WTA on your house(Register your house in the company's name and call it office premises) 3.Meals for your and your family(your can call it employee meals or employee welfare) 4.House keeping expenses(Office maintenance) 5.Savings 6.House helps salary(You can call it wages to casuals etc. 7.Buy a company car and charge WTA. 8.Charge WTA on your company(of course its yours) electronics(TV;s phones, computers etc), furniture etc Deduct everything and declare a loss to KRA You are a genius. @fishmonger, I knew you're genius. In fact I think if you were to come up with a dictionary, we would have a very simple one, of say 100 pages, after all why have " contradiction" and " opposite" yet they mean the same!
|
|
|
Wazua
»
Market
»
Pennywise
»
Kenya Tax Burden
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|