Notes:
PAYE (Pay As You Earn) is income tax deducted from salaries. Computation details:
- AHL (Automatic Housing Levy) – 1.5% of gross salary.
- NSSF (National Social Security Fund) – 6% of gross salary capped at KES 2000.
- SHIF/NHIF – Health contributions; SHIF 2.75%, NHIF bands KES 150–1700 depending on salary.
Net Salary = Gross Salary – (AHL + NSSF + SHIF/NHIF + PAYE). Employer Cost = Gross + PAYE + AHL + NSSF.
Tax bands applied: 0–12,298 @10%, 12,299–23,885 @15%, 23,886–35,472 @20%, 35,473–47,059 @25%, above 47,059 @30%. Personal relief KES 2,400 applied.
Notes:
VAT (Value Added Tax) = Output VAT – Input VAT.
Output VAT = Sales × Rate, Input VAT = Purchases × Rate.
VAT payable = Output – Input, refund if negative.
Notes:
TOT (Turnover Tax) = Small business monthly turnover × selected rate. Annual TOT = monthly × 12.
Notes:
CGT (Capital Gains Tax) = (Sale Price – Acquisition Price – Allowable Expenses) × 15%.