Pay as You Earn (PAYE)
PAYE is collected from individuals that engage in gainful employment. Here, the employer makes a withdrawal of a particular percentile from the employee’s salary and renders it to the Kenya Revenue Authority (KRA). PAYE applies to commissions, weekly wages, annual and monthly salaries, and bonuses among others
Corporation Tax
Under this tax, firms in this country pay a sum of their total income. Locally owned companies charge 30% while international companies with branches in Kenya would pay 37.5% of their profit.
Value Added Tax
VAT is charged upon consumption and imposed on goods and services like supermarkets or restaurants.
Custom and Excise Duty
Excise duty is levied on certain imported goods and some locally manufactured ones while Custom duties are charged to the importers of goods at the point of importation. The Custom and Excise duty is elaborately discussed in the Custom and Excise Act 2010 which we shall tackle later.
Withholding Tax
Withholding tax is charged on dividends, pensions, royalties, and interests and differs from the rest as their rates of collection are not fixed. This is because they vary according to whether a payer is a resident or non-resident.
Residential Rental Income Tax
As the name suggests, this tax is applicable as income tax and is subject to only those that collect from residential property. The Finance Act of 2015, which shall be covered later, dictates that the amount should not be over Kshs 10 million per income year.
Advance Tax
This statute is applied to public service and commercial vehicles. The Advance tax is paid in advance before the owners can get their vehicles registered.
