How is PAYE KRA calculated?

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How is PAYE KRA calculated?

Pay-As-You-Earn(PAYE) is the tax charged on income earned by employees in Kenya. The formula for calculating this income tax in Kenya uses the following simple steps: Gross Income = Basic salary + allowances + commissions. Step 2.

How is PAYE calculated in 2021 Kenya?

In Kenya, workers in formal employment are taxed through a deduction named Pay As You Earn (PAYE)….PAYE Calculator (Updated 2021 tax rates)

Monthly Bands of Taxable Income (KES) Tax Rate
0 – 24,000 10%
On the next 8,333 25%
Remaining amount over 32,333 30%
Personal Relief: KES 2,400.00 per month

How do you calculate personal income tax?

Here’s how to compute for your new income tax:

  1. Take your montly salary and deduct contributions for SSS, PhilHealth, and Pag-Ibig Fund.
  2. If your salary exceeds P90,000 a month, get the taxable amount of your 13th month pay by subtracting P90,000 from your salary and dividing the result by 12.

How much is PAYE tax in Kenya?

How is PAYE Calculated?

Tax Band Rate of Tax
On the first Kshs 24,000 per month or Kshs 288,000 per annum 10%
On the next Kshs 8,333 per month or Kshs 100,000 per annum 25%
On all income amount in excess of Kshs 32,333 per month or Kshs 388,000 per annum 30%
Personal Relief

How is VAT calculated Kenya?

In order to calculate VAT payable in Kenya, the input-output tax system works best. There is also VAT on commercial property as the tax rate is 30 percent for resident taxpayers and 37.5 percent for non-resident taxpayers. Taxpayers are allowed to deduct input tax directly attributable to taxable output.

How much is Paye Kenya?

How do you solve taxable income?

Taxable Income Formula = Gross Sales – Cost of Goods Sold – Operating Expense – Interest Expense – Tax Deduction/ Credit.