income tax objective; calculate income tax on individual incomes
TRANSCRIPT
INCOME TAXObjective;
Calculate income tax on individual incomes
Types of taxesValue added taxExcise dutyImport dutyWithholding taxCapital gains taxIncome tax
Types of incomesSalaryAllowancesProfit from businessRental incomePensions
Rates of taxAnnual Income Rate in each shilling
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%
Rates of taxMonthly Income Rate in each shilling
On the first Shs.10,164 10%
On the next Shs.9,576 15%
On the next Shs.9,576 20%
On the next Shs.9,576 25%
On all income over Shs.38,892 30%
Tax calculation
Ex 1; calculate the tax due from james if he has an annual income of Ksh 584,000
584, 000 = 121,968 + 114,912 + 114,942
+ 114,942 + 117,296121968 * 10% = 12196.8114912 * 15% = 17236.8114912 * 20% = 22982.4114912 * 25% = 28728.0117296 * 30% = 35188.8
= 116,332.8
Activity Break down the following annual incomes into
appropriate tax bands and calculate the tax due.
1. Ksh 78,5602. Ksh 286,8003. Ksh 685,4004. Ksh 358,200