Finance experts- Avoid taxing on bonuses

[Hunter_Xp]

How can i avoid or atleast reduce the weight am bearing from taxes on my bonuses? Any assistance will be highly appreciated.

Yours faithfully

[Electronics4u]

@Hunter Xp

How can i avoid or atleast reduce the weight am bearing from taxes on my bonuses? Any assistance will be highly appreciated.

Yours faithfully

Ask your accountant to pay them as ‘Commissions’ which attract only withholding tax of 5%.

[Weston]

@Hunter Xp ,kwani we ni director mahali?

[system]

My salo is 45K…commisions over 700K haiya

[Hunter_Xp]

@Weston

@Hunter Xp ,kwani we ni director mahali?

Jibu swali…wacha maswali…

[panktcha]

Not possible nowadays. KRA are very keen on taxes. Especially if bonuses fall under employment income (you cannot attach expenses that reduce the taxable amount). Unless you are paid in cash by accounts with no paper trail at all.

[panktcha]

@Electronics4u

Ask your accountant to pay them as ‘Commissions’ which attract only withholding tax of 5%.

Withholding tax on commissions is not final. He’ll still calculate his annual earnings (employment, rent, dividends, bonuses, other business, donations etc) and pay tax at 30% (if it exceeds 466,704).

[Raheem8]

@panktcha

Especially if bonuses fall under employment income (you cannot attach expenses that reduce the taxable amount). Unless you are paid in cash by accounts with no paper trail at all.

There are allowable expense that should be deducted from the taxable pay, commissions are one of them. Withholding tax is always a final tax.