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<strong>2017</strong> EMPLOYER’S GUIDE TO <strong>PAYE</strong> | KENYA REVENUE AUTHORITY<br />
APPENDIX 4B (1)<br />
TABLE 2<br />
TAX FREE REMUNERATION 2016<br />
8. Where the employee received housing benefits, calculate the tax liability for the<br />
month as follows:-<br />
1 Monthly cash income before pension deduction Kshs.18,000 Kshs.50,000<br />
2 Deduct pension contribution Kshs. 956 Kshs. 998<br />
3 Monthly cash income after pension deduction (1-2) Kshs.17,044 Kshs.49,002<br />
4 Monthly benefits Kshs.10,000 Kshs.15,000<br />
5 income including benefits (3)+(4) Kshs.27,044 Kshs.64,002<br />
6 Housing benefit 15% of (5) or monthly fair market<br />
rental value, where applicable<br />
Kshs.30,000*<br />
7 Taxable income (5) + (6) Kshs.27,044 Kshs. 94,002<br />
8 Tax on monthly taxable income (calculate from<br />
Table 1, column (b))<br />
Kshs. 3,912<br />
Kshs.23,294<br />
9 Monthly tax reliefs Kshs. 1,162 Kshs. 1,162<br />
10 Tax net of reliefs (8)-(9) Kshs. 2,750 Kshs.22,132<br />
11 Factor with housing Table 1, column (e) for taxable<br />
income in row 7 above<br />
Kshs. 1.250 Kshs. 1.527<br />
12 Monthly tax payable (multiply 10 by 11) Kshs. 3,437 Kshs.33,795<br />
13 Chargeable income (12) + (1) Enter gross Pay in<br />
column (A) of P.98)<br />
Kshs.21,437**<br />
Kshs.83,795**<br />
* Fair market value<br />
** See month of June-September entries - (APPENDIX 4(1)}<br />
*** See months of October-December - (APPENDIX 4(1)}<br />
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