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How does one Calculate Taxable income?
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Bonc
#1 Posted : Thursday, November 19, 2009 1:47:00 PM
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Joined: 11/18/2009
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How does one Calculate Taxable income?
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McReggae
#2 Posted : Thursday, November 19, 2009 1:49:00 PM
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Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
Visit the KRA website and you will get all the information yu want!!!!!

The chief value of money lies in the fact that one lives in a world in which it is overestimated.
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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bkismat
#3 Posted : Thursday, November 19, 2009 2:31:00 PM
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Joined: 10/23/2009
Posts: 2,375
A The individual rates of tax shall be:-
Rate in percentage
on the first Shs.121,968/= 10%
on the next Shs.114,912/= 15%
on the next Shs.114,912/= 20%
on the next Shs.114,912/= 25%
on all income over Shs.466,704/= 30%
Calculate on your annual salary the divide by 12 to get the monthly tax. you also get some releif depending on whether you are married or single.This is for salaried employees
me myself and i
It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
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petro
#4 Posted : Thursday, November 19, 2009 2:47:00 PM
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Joined: 11/8/2008
Posts: 26
@bonc,

This guide should help you

http://www.kra.go.ke/inc...df/PAYEGUIDE11-1-07.pdf

Success is a lousy teacher. It seduces smart people into thinking they can't lose.
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anasazi
#5 Posted : Thursday, December 03, 2009 7:24:56 AM
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Joined: 6/8/2007
Posts: 675
I always wondered, if you have a monthly salary, but also do some jua kali, do you have tax obligations on the jua kali? And what are the guidelines for calculating this?
Form is temporary, class is permanent
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AlphDoti
#6 Posted : Thursday, December 03, 2009 1:56:11 PM
Rank: Elder


Joined: 6/20/2008
Posts: 6,274
Location: Kenya
Taxable Income = Income - (Pension + Home ownership + NSSF)

To calculate your TAX in Excel, copy paste the below and replace "Taxable income":

(IF((Taxable income)>10164,10164*10%,0))+(IF(((Taxable income)-10164)>0,IF(((Taxable income)-10164)>9576,9576*15%,((Taxable income)-10164)*15%),0))+(IF(((Taxable income)-10164-9576)>0,IF(((Taxable income)-10164-9576)>9576,9576*20%,((Taxable income)-10164-9576)*20%),0))+(IF(((Taxable income)-10164-9576-9576)>0,IF(((Taxable income)-10164-9576-9576)>9576,9576*25%,((Taxable income)-10164-9576-9576)*25%),0))+(IF(((Taxable income)-10164-9576-9576-9576)>0,((Taxable income)-10164-9576-9576-9576)*30%,0))
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Maoni
#7 Posted : Monday, December 07, 2009 2:24:52 PM
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Joined: 6/25/2009
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Taxable income= Gross income less Allowable deductions

where:
i.Gross income= Basic pay + allowances
ii.Allowable deductions refer to the tax exempt deductions like contributions towards a pension or provident scheme,mortgage repayments for a residential house etc
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mdosi
#8 Posted : Monday, December 07, 2009 3:47:00 PM
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Joined: 2/1/2007
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Location: Nairobi
@Anasazi.
You are supposed to pay your taxes from all sources(Global)
It's amazing what you can achieve when you get rid of fear.
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anasazi
#9 Posted : Monday, December 07, 2009 5:06:45 PM
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@mdosi... sasa.. just asking... if i do a kajob somewhere, maybe deliver mbogas to some guy, and make a profit of 20K... off the books. This is like a one off deal. How do I go about paying taxes as a good Kenyan? Or should I even bother? I suspect most Kenyans dont even bother. Too much of a hustle. The deal was off the books, and not because you wanted to evade taxes - it was just too much trouble to have it in the books!
Form is temporary, class is permanent
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mukiha
#10 Posted : Tuesday, December 08, 2009 8:05:14 AM
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Joined: 6/27/2008
Posts: 4,114
@anasazi:

You know the Tax Returns that we fill at the end of the year? That is where you declare that profit...and you simply attach a P&L showing the purchase price of the goods, the selling price and other costs. KRA does not ask for audited accounts unless they believe you are cheating - in which case the audit you themselves.

Depending on your other income, the tax on the 20k can be as high as 6k.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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meshaque
#11 Posted : Tuesday, December 08, 2009 8:51:52 AM
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Location: Nairobi
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the sage
#12 Posted : Tuesday, January 05, 2010 1:29:31 PM
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Joined: 11/20/2008
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@Anasazi I think you are taking this give unto Ceaser thing too far.
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the sage
#13 Posted : Monday, January 18, 2010 8:41:39 AM
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Joined: 11/20/2008
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@Mukiha and Bksimat, if you own an Mpesa oulet how do you calculate VAT? Or do you apply for ToT since it is likely that you will generate less than Sh5 millioj in turnover.
I fear the taxman more than rabbies, so I want to be very careful.
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Chaka
#14 Posted : Monday, January 18, 2010 9:34:00 AM
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Joined: 2/16/2007
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I think is high time 'michango' were made tax deductible i.e contributions towards medical expenses,school fees,funerals etc....
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mukiha
#15 Posted : Monday, January 18, 2010 12:37:30 PM
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Joined: 6/27/2008
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@the sage; The M-Pesa outlet would qualify for TOT...if this is the only line of income you have.

But the ask yourself whether the profit margin is greater than 30%. If not, you might end up paying higher tax through TOT than through normal Income Tax.

There is no VAT on agent's commissions from M-Pesa. So no need to worry about it.

Don't fear the tax man. Look out in the press for KRA Taxpayer Seminars. They are very educative.

Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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the sage
#16 Posted : Monday, January 18, 2010 2:22:15 PM
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Joined: 11/20/2008
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Thanks Mukiha. I'm a stickler for order because I do not want to be asked, "You knew the rules..." I'll try and go for one of those seminars, I could learn a lot.
It is good to share information;

Thousands of candles can be lighted from a single candle, and the life of the candle will not be shortened. Happiness never decreases by being shared.

Buddha
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KarugaEdwin
#17 Posted : Tuesday, December 09, 2014 7:11:55 AM
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Joined: 12/8/2014
Posts: 4
Hi

Try this PAYE Income Tax Calculator - http://www.calculator.co...e-income-tax-calculator/
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kiterunner
#18 Posted : Wednesday, December 24, 2014 12:37:06 AM
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Joined: 7/9/2011
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Location: Nairobi
www,aren.co.ke
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