Housing tax pain deepens as KRA goes for gross pay

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Principal Secretary State Department for Housing and Urban Development Charles Hinga gestures during a press briefing at State House on May 24, 2023, on the Housing Pillar of the Bottom Up Economic Agenda. PHOTO | FRANCIS NDERITU | NMG

The taxman has directed employers to use gross pay when calculating what to deduct from staff salaries as housing levy, revealing the hidden pain for workers in the controversial tax starting this month.

The directive, which has sent shockwaves across human resource departments, means that the Kenya Revenue Authority (KRA) will require that allowances paid to staff such as hardship, travel, airtime and car allowances be included while making monthly computations.

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Note: The results are not exact but very close to the actual.