INCOME TAX IN KENYA
Income tax is tax charged for each year of income for income from persons ,resident or non-resident income which is accrued or derived in Kenya.
Income Tax is imposed on incomes from:
- Business from any trade or profession.
- Digital marketplace
- Dividend and Interests.
- Pension among others.
METHODS OF COLLECTING INCOME TAX.
Income tax is categorized as a direct tax in Kenya.
Income Tax is collected using various methods depending on the sources of income.
- CORPORATION TAX
This is a type of Income Tax that is levied on corporate bodies such as Limited companies, Trusts, and Co-operatives, on income derived on a given year of income.
NB:Companies based outside Kenya but operate within Kenya,also pay corporation tax on income accrued in Kenya only.
- PAY AS YOU EARN(PAYE ) TAX
PAYE tax is tax chargeable at source to persons with monthly employment income of Kshs. 24,000 and above.
This is directly deducted by employers from employees salaries depending on the prevailing tax rates and directly remitted to the KRA on or before 9th of the following month.
- WITHHOLDING TAX(WHT)
- Advance Tax
This is a tax paid in advance before a public service vehicle or a commercial vehicle goes for the annual inspection.
Installment tax is paid by persons who have tax payable for any year that amounts to Kshs. 40,000 and above.
Jamii Capital Limited is here to sort and fulfill your needs of filing taxes.