1. INCOME TAX Objective; Calculate income tax on individual incomes

2. Types of taxes Value added tax Excise duty Import duty Withholding tax Capital gains tax Income tax

3. Types of incomes Salary Allowances Profit from business Rental income Pensions

4. Rates of tax Annual IncomeRate in each shilling On the first Shs.121,96810% On the next Shs.114,91215% On the next Shs.114,91220% On the next Shs.114,91225% On all income over Shs.466,70430%

5. Rates of tax Monthly IncomeRate in each shilling On the first Shs.10,16410% On the next Shs.9,57615% On the next Shs.9,57620% On the next Shs.9,57625% On all income over Shs.38,89230%

6. 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 + 117,296 121968 * 10% = 12196.8 114912 * 15% = 17236.8 114912 * 20% = 22982.4 114912 * 25% = 28728.0 117296 * 30% = 35188.8 = 116,332.8

7. Activity Break down the following annual incomes into appropriate tax bands and calculate the tax due. 1. Ksh 78,560 2. Ksh 286,800 3. Ksh 685,400 4. Ksh 358,200