This is the net amount that is deducted from the total PAYE tax on the employee’s monthly income. It is deducted from the employee’s tax obligation and added to his/her take home page. It is one of the key tools of the progressive taxation system used in income distribution.
A resident individual with taxable income is entitled to a personal relief of KSh 1,162 per month or KSh 13,944 per year in the year ending 31st December 2016. The new personal tax relief amount for the year 2017 going forward is KSh1,280 per month or Sh15,360 per year.
Read Also:
- KRA P9 form Download – How to File KRA Returns Using P9 Form
- New KRA PAYE tax rates 2020
- How is PAYE calculated?
- What is this PAYE income tax calculator?
- What is Pay As You Earn (PAYE)
