The new monthly and annual tax rates for deducting and remitting Pay As You Earn (PAYE) taxes on the salaries and pensions of employees have been released by Kenya’s Revenue Authority, Standard Digital reports.
The release of the new rates follows Parliament finally enacting into law reduced rates of tax on April 22 which were proposed by President Uhuru Kenyatta on March 25. According to the KRA directive, employers who have yet to pay their employees for April 2020 should apply the enacted changes.
Under the new rates, employees earning Sh24,000 and under will now be taxed at 10 per cent or PAYE. Those earning over Sh24,000 but under Sh40,667 will pay 15 per cent PAYE. Employees earning over Sh40,667 but under Sh57,334 will pay 20 per cent, while those earning anything above Sh57,334 will pay 25 per cent PAYE.
All employees will receive Sh2,400 of tax relief monthly. This means the tax for PAYE paid out by those earning Sh24,000 and under will be cancelled, hence they will get 100 per cent tax relief according to the President's directive.
The new tax rates for the pensions of those receiving Sh400,000 and under will be 10 per cent. The rate above Sh400,000 but under Sh800,000 will be 15 per cent. 20 per cent will be deducted for those earning more than sh800,000 but below Sh1.2 million. Anything received above Sh1.2 million will have a deduction of 25 per cent.
The due date for PAYE taxes and taxes on pensions, however, remains on or before the 9th day of the following month.
Source: Standard DigitalThe new monthly and annual tax rates for deducting and remitting Pay As You Earn (PAYE) taxes on the salaries and pensions of employees have been released by Kenya’s Revenue Authority, Standard Digital reports.
The release of the new rates follows Parliament finally enacting into law reduced rates of tax on April 22 which were proposed by President Uhuru Kenyatta on March 25. According to the KRA directive, employers who have yet to pay their employees for April 2020 should apply the enacted changes.
Under the new rates, employees earning Sh24,000 and under will now be taxed at 10 per cent or PAYE. Those earning over Sh24,000 but under Sh40,667 will pay 15 per cent PAYE. Employees earning over Sh40,667 but under Sh57,334 will pay 20 per cent, while those earning anything above Sh57,334 will pay 25 per cent PAYE.
All employees will receive Sh2,400 of tax relief monthly. This means the tax for PAYE paid out by those earning Sh24,000 and under will be cancelled, hence they will get 100 per cent tax relief according to the President's directive.
The new tax rates for the pensions of those receiving Sh400,000 and under will be 10 per cent. The rate above Sh400,000 but under Sh800,000 will be 15 per cent. 20 per cent will be deducted for those earning more than sh800,000 but below Sh1.2 million. Anything received above Sh1.2 million will have a deduction of 25 per cent.
The due date for PAYE taxes and taxes on pensions, however, remains on or before the 9th day of the following month.
Source: Standard Digital