COMMERCIAL ARITHMETIC: INCOME TAX
Shifting Grades Online School・2 minutes read
A civil servant in Kenya with a 19,200 KES salary receives allowances totaling 46,500 KES, making their taxable income. After tax rates, the gross tax is 9,300 KES minus 1,240 KES for tax relief, resulting in a net tax of 8,090 KES.
Insights
- The taxable income of a civil servant in Kenya is not solely based on their basic salary but also includes various allowances, significantly impacting the total amount subject to taxation.
- After calculating the gross tax based on specific rates per 20 Shillings, tax relief is applied to arrive at the final net tax or pay as you earn, highlighting the importance of understanding the tax structure to accurately determine an individual's tax liability.
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Recent questions
How is taxable income calculated?
By adding basic salary and allowances.
What is gross tax based on?
Specific tax rates per 20 Shillings.
How is net tax calculated?
By subtracting tax relief from gross tax.
What is the civil servant's total income?
Basic salary plus allowances.
What is the tax relief amount?
1,240 Kenyan Shillings.
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Summary
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Calculating Net Tax for Kenyan Civil Servant
- A civil servant with a basic salary of 19,200 Kenyan Shillings per month receives various allowances, totaling 46,500 Kenyan Shillings, which constitutes their taxable income.
- The taxable income is then used to calculate the gross tax based on specific tax rates per 20 Shillings, resulting in a gross tax of 9,300 Kenyan Shillings.
- To determine the net tax or pay as you earn, the tax relief of 1,240 Kenyan Shillings is subtracted from the gross tax, leaving a net tax of 8,090 Kenyan Shillings.
