Date: Wed, 11 Feb 2009 09:32:38 -0800 [11:32:38 AM CST]
From: shabana osman
Subject: Re: Tax avoidance

Hi, Lydia

Kenya income tax is very widely stated and includes in taxable income employment all income derived from Kenya. The allowance you are earning under the provision of section 5 of the income tax act will be construed as taxable.

Email me directly then can see how to help you.

Regards

Shabana

— On Wed, 2/11/09, michael kimani wrote:

From: michael kimani
Subject: Re: Tax avoidance
Date: Wednesday, February 11, 2009, 4:25 AM

hi lydia…if the alllowance is not indicated on ur employers record as you having had received that amount then all you have to do is not to include the amount in your tax returns. If however your employer has record of how much they paid you inclusive of the allowance then at some point KRA may catch up with you since they already knw from your employer hw much tax you are suposed to pay on the total amount of money that they give you ie salary+allowance.
PAYE is calculated on the graduated scale rate of tax given by the taxing body. It varies as 10% 15% 20% 25% 30% with various amounts at each level

On 2/11/09, lydia daniel wrote:

Hi group.
Can any one tell me on how i can avoid tax on topping up allowance given separately from my salary and how the tax (paye) is calculated .Example im getting basic salary of Tshs 250,000/= Between 15th and 20th I get Tshs 200,000/=from project within the institute.No any other allowance is given.

Regards.