Is school fees exempted from tax in Kenya?

To make education more affordable, the Income Tax Act (ITA) has provided incentives for education services. … This implies that income for school institutions in Kenya is not taxable from an income tax perspective.

Do private schools pay taxes in Kenya?

They are issued a tax identification number to facilitate tax payment”. From this statement all private schools, irrespective of the foundation body (religious, NGOs, individuals or companies) are taxable.

Are school fees taxable?

The private school fees are then paid by paying out dividends to the children. This is tax free for the children because so long as the children don’t have any other earnings or income, they can use their personal tax allowance.

What allowances are not taxable in Kenya?

Bonuses, overtime allowance and retirement benefits paid are tax exempt where they are paid to an employee whose salary before the bonus and overtime allowance does not exceed Kshs. 11,180 p.m. (i.e. 134,164 pa).

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Do you have to pay to go to school in Kenya?

No school in Kenya is “free” attend a government school the child needs to pay an “Enrolement fee from 600/- to 1,000/- per term plus Uniform – PE kit shoes – pencil – books and “enviromental fee” all tuition after 12 am is extra – payable to the headmaster with lessons from 30/- to 60/- per child . .

Do public schools pay taxes in Kenya?

Taxation of EDUCATIONAL Institutions : TAX EXEMPT bodies and institutions are found in the FIRST SCHEDULE of the Income Tax Act cap 470. … Hence these institutions will be taxed just like any other business. PUBLIC schools by default satisfy Para. 10 hence exempt from corporation tax.

Do schools pay tax in India?

Government Educational Institutions:

Hence, a Government educational institution is fully exempt from income tax without any separate approvals etc. as long as it is not for profit purpose.

Can I claim tax credits for school fees?

How it works: You can deduct up to $4,000 from your gross income for money you spent on eligible education expenses in tax year 2020. These expenses include tuition, fees, books, supplies and other purchases your school requires.

Are bursaries tax deductible?

Any bona fide bursary which is granted to an employee where there is no associated reduction or forfeiture in remuneration, will therefore not be taxable.” In short, salary sacrifice occurs when an employee reduces his or her taxable income for an equivalent, but tax-free, benefit.

How can I restructure my salary to pay less tax?

HRA up, but exemption down

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Under tax rules, the HRA exemption is the least of the following three: actual HRA; 50% of basic salary (40% in non-metros) and actual rent paid minus 10% basic salary. In our example, although her HRA is Rs 2.88 lakh, she can claim tax exemption for only Rs 2.42 lakh.

Which amount is tax free?

Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both regimes. Rebate under section 87A is not available for NRIs and Hindu Undivided Families (HUF) Cess at the rate of 4% is applicable on the income tax amount.

What employee benefits are not taxable?

Other fringe benefits that are not considered taxable to employees include health insurance (up to a maximum dollar amount), dependent care, group term-life insurance, qualified benefits plans such as profit sharing or stock bonus plans, commuting or transportation benefits, employee discounts, and working condition …

What salary is taxable in Kenya?

PAYE Calculator (Updated 2021 tax rates)

Monthly Bands of Taxable Income (KES) Tax Rate
0 – 24,000 10%
On the next 8,333 25%
Remaining amount over 32,333 30%
Personal Relief: KES 2,400.00 per month

What age do you start school in Kenya?

In Kenya, the Ministry of Education’s (MOE’s) guidelines dictate that a child should start schooling at the age of 6 and complete the primary schooling cycle in class 8 at the age of 13.

How long do kids in Kenya go to school?

Education of Kenya. The national educational system consists of three levels: eight years of compulsory primary education (beginning at age six), four years at the secondary level, and four years of higher education. The government provides free primary and secondary education.

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Is public school free in Kenya?

Today, 33 % of Kenya’s primary schools are private, and so are 15 % of all secondary schools. The gap keeps closing as demand for private education remains strong. Why do even impoverished parents pay private-school fees when public education is ostensibly free? To begin with, public schools are not entirely free.

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