![]() ![]() Loans at interest rates that are lower than the prevailing market rate.Where an employee is provided with a motor vehicle by his employer e.Gains or profits from employment that are not paid in cash are chargeable to tax. PAYE Due DateĮmployers are required to deduct tax (PAYE) from their employees’ emoluments at the prevailing Individual Income Tax Rates and remit the amounts deducted to KRA on or before the 9 th day of the following month. You can also use the PAYE Calculator to determine Tax Payable. On any amount in excess of Kshs 1,600,000 Remit the tax deducted to the Kenya Revenue Authorityįor purposes of computing PAYE, an employer is required to apply the Individual Income Tax Rates (Bands) that range from 10% to 35% as per Finance Act 2023 as tabulated below (effective 1 st July 2023) Īny amount in excess of tax free amounts: Deduct tax from the employee(s) emoluments.Effective 1st July 2023.Ĭlub entrance and subscription fees shall be treated as taxable income to the extent that the expense has been allowed against the employer’s income.Ĭharged on both Residents and Non-ResidentsĪny person who pays emoluments to an employee(s) is required to register for the PAYE obligation, upon which the person is required to: ![]() Taxable employment income includes, all cash payments however described and the value of non-cash benefits (exceeding Ksh 3,000 per month).Ĭash pay includes wages, salary, sick pay, leave pay, fees, commissions, bonuses, service gratuity, allowances, director’s fees, overtime, pension, entertainment and any other payments received in respect of employmentĪny excess mileage reimbursement to employee based on the rates that are higher than AA Kenya rates will be taxable on the employee. PAYE is a system of tax collection whereby employers are required to deduct tax from the employment income of their employees and remit the tax to the Kenya Revenue Authority.
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