income tax objective; calculate income tax on individual incomes

7
INCOME TAX Objective; Calculate income tax on individual incomes

Upload: jared-haynes

Post on 25-Dec-2015

213 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: INCOME TAX Objective; Calculate income tax on individual incomes

INCOME TAXObjective;

Calculate income tax on individual incomes

Page 2: INCOME TAX Objective; Calculate income tax on individual incomes

Types of taxesValue added taxExcise dutyImport dutyWithholding taxCapital gains taxIncome tax

Page 3: INCOME TAX Objective; Calculate income tax on individual incomes

Types of incomesSalaryAllowancesProfit from businessRental incomePensions

Page 4: INCOME TAX Objective; Calculate income tax on individual incomes

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%

Page 5: INCOME TAX Objective; Calculate income tax on individual incomes

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%

Page 6: INCOME TAX Objective; Calculate income tax on individual incomes

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

Page 7: INCOME TAX Objective; Calculate income tax on individual incomes

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