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Elsa Majimbo stan account Profile picture
@RookieKE
Jun 20, 2018 • 48 tweets • 18 min read • Read on X
As you grab your lunch, tune in to our Twitter chat, and ask questions about how you can legally reduce your tax burden. I will have our tax experts @ushuru_co_ke online for this.
Heeeeey guuuuuys! Welcome to my channel!
Seriously though, it is tax season, and I would like us to chat for a bit about how to manage our taxes.
#FileWithUshuru
To start off, let me make it clear, that tax management is not Tax Evasion. Tax Evasion is illegal and we want nothing to do with that. We want to Avoid paying more tax than we should #FileWithUshuru
First off, I am an accountant by training but hardly a tax expert, and that's why @ushuru_co_ke is at hand to answer questions and correct me where I present outdated information. #FileWithUshuru
Why am I doing this with @ushuru_co_ke ? Because they are doing taxes differently. First they are fully online ( ushuru.co.ke ), and they are on our side as taxpayers. They are focused on educating us, and that I love. #FileWithUshuru
The structure of this chat:
I'll share 7 ways you can reduce the taxes you pay legally, and then we go to Q&A.
And this is for employed folk. People on a salary. For the business folk, don't tense, we have a chat for you cooking #FileWithUshuru
1. The first and the easiest, is Personal Relief. This is for all employed taxpayers and should be applied by your employer BEFORE they pay you. Last year it was KES 1,280 p.m and this year it is KES 1,408 PM #FileWithUshuru
Generally, most employers know to apply personal relief, but if you are working with a young or an informal business (you know those ones where the boss pays you out of their personal account), double check your payslip. #FileWithUshuru
2. Insurance relief. If you are paying life insurance, medical insurance, or education insurance, you qualify for this. The tax man gives you a relief of 15% of the premiums you pay to a maximum of 5,000 bob per month #FileWithUshuru
How to claim the relief? Ask your insurance company/companies to issue you with a relief card showing your name, type of policy, premiums payable and other such details. Give it to your employer, and follow up to make sure they deduct #FileWithUshuru
I bet many of us pay medical insurance but have never gotten insurance relief for it. Please rectify that today / this financial year. #FileWithUshuru
3. Pension contributions. Any money you contribute to a registered pension scheme (one that is registered with @RBA_Kenya ) is tax exempt, to a max of KES 20,000 per month. I will spend some time here. #FileWithUshuru
You know how we say you should pay yourself before paying anyone else? Pension contributions are truly that. By contributing to one, you are paying yourself EVEN BEFORE PAYING THE TAX MAN! #FileWithUshuru
What do I mean? If your gross pay is 100k, and you contribute 20k for pension, the tax man will start taxing you at 80k. #FileWithUshuru
Now, many of us are in jobs where the employer has a matching pension scheme. Where they pay a certain percentage for you. These things tend to be optional, so we do not join them. Or we procrastinate indefinitely.
Problem is, we are literally leaving money on the table.
1. The matching our employer would do (which is like someone giving you free cash); and
2. The tax savings.
Don't be that person who refuses money #FileWithUshuru
4. Tax-free remuneration (yes, this exists). If you receive the following pay:
a) A daily per diem not exceeding KES 2,000
b) Bonuses, overtime pay, and retirement benefits if you are in the lowest tax band (KES 12,298.33 p.m). Those of us who have helpers, please note.
c) Meals your employer provides you, where the value does not exceed KES 4,000 per month.
The above 3 benefits/types of pay are not taxable #FileWithUshuru
5. Do you have a mortgage funded by a bank, insurance company, NHC or a building society?
Interest you pay on this mortgage is allowed as a tax deduction to a max of 25k per month. #FileWithUshuru
HOWEVER, this has to be for the home you live in. If you live in it only for part of the year, then the allowable deduction will be limited to the period when you lived there. #FileWithUshuru
6. If you are a person living with disability. Please register with National Council for People with Disability (NCPWD) and KRA, and the first 150k of your salary will be tax-free. Please share this widely. #FileWithUshuru
7. If you have income from Canada, India, Denmark, Iran, France, Germany, South Korea, Norway, Qatar, South Africa, Sweden, UAE, UK, Zambia and Singapore. This is for you #FileWithUshuru
Kenya has double tax agreements with these countries, which means if they have already taxed your income, the tax credit will be recognized by KRA, and they won't tax you. #FileWithUshuru
I want to add some tweets from @ushuru_co_ke onto the thread, then we can go to the Q&A
About insurance relief. You can claim for prior years.
More on insurance relief
Please confirm on your P9 that this rate has been applied
Told you guys. I am rusty. My attempt at jargon failed 😂😂😂 basically
Onto the questions.
Q1. Under which conditions can one get a waiver on the penalty charged for not filing returns? Say they missed last year. @ushuru_co_ke #FileWithUshuru
Thanks @ushuru_co_ke
Q2. How is the personal relief calculated? Yearly or from the time your employer starts submitting returns (PAYE) #FileWithUshuru
#FileWithUshuru
Q3. If your are owed by KRA a refund, can you of-set the refund from your penalty? @ushuru_co_ke #FileWithUshuru
Q4 via @Madame_Smelly
a) Are you sure about insurance relief for medical insurance?
b) If you have part time work & have paid withholding tax, do you file it as employment income, or business income? @ushuru_co_ke #FileWithUshuru
Medical insurance premiums are eligible for insurance relief!
Ok guys. That's the end of our extended lunchtime Twitter chat. Why do I do these chats? Because we want to be money smart in all respects. That is what the #52WeekChallenge is all about.
We are approaching the end of month 6 on the #52WeekChallenge I hope we are all keeping up. And it is not too late to start! This is the best thing you can do this year
rookie-manager.com/52weekchalleng…
Finally I want to thank @ushuru_co_ke for joining me today. This is the first of 4 chats I hope to have with them about being tax smart. Please keep sending them questions #FileWithUshuru
Also go to their site ushuru.co.ke they are making tax filing pain-free at very pocket friendly rates
Don't wait till the last minute, don't stress. @ushuru_co_ke is online and they do the work for you #FileWithUshuru
Thank you so much guys for watching...sorry FOLLOWING the chat, for asking questions and RTs

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More from @RookieKE

Elsa Majimbo stan account Profile picture
Sep 9, 2018
The number of people in her mentions saying it isn't an exchange.
But it is. That's why uncles get emotional about bride price😢
Nothing else about a marriage gets uncles as involved as the bride price negotiation.
The only other time they get involved is if the marriage breaks down and the threat that they may need to refund said bride price becomes real 😂😂😂
Read 14 tweets
Elsa Majimbo stan account Profile picture
Sep 9, 2018
Was chatting with a friend from Tz, and their relationship with the Chinese in Tz is curiously different. They've learnt Kiswahili, there are intermarriages, and everyone knows disrespecting the country/breaking the law = instant deportation.
This was right from the start. It be your own leadership.

Our leadership set off by taking bribes to allow businesses in, giving out work permits like sweets and treating Chinese business folk as superior to us. Now everyone is surprised.
Btw. It would be nice to hear from TOT about my friend's opinion of their interactions with the Chinese who have immigrated to Tz.
Read 4 tweets
Elsa Majimbo stan account Profile picture
Sep 9, 2018
#CourageStoriesLive
I need to ask my family if they fully think I'm going to hell😂
Yesterday @kawirathambu spoke about the "5 Whys" of belief, where if you keep asking a believer "Why" Re: their belief, you get to the heaven/hell thing by the 5th why.
I have encountered believers who don't believe in the afterlife. I also didn't for the last 5 or so years of my believing. Their belief is that the religion helps them live a good life here.
Read 4 tweets
Elsa Majimbo stan account Profile picture
Sep 8, 2018
Today's #CourageStoriesLive was nice! Sharing my story triggered some interesting life memories.

Like how I wanted to do law for all of 5 minutes but changed my mind because we agreed with mom that it wouldn't glorify God 😂
I am not sure accounting glorifies God either. Teaching folk how to pay Ceaser as little as possible 😂😂😂
And if I had worked for KRA, I would be in the same league as that short dude in the bible.

Tax collectors and sex workers were in the same league 2,000 years ago.
Read 4 tweets
Elsa Majimbo stan account Profile picture
Aug 31, 2018
Catholic Bishops have rejected a law that would compel them to report confessions of sex abuse of children heard in the confession box.
They say that it would interfere with religions freedoms. No shit!
It's almost as if abusing children sexually isn't really illegal if you are Catholic. Especially if you are a priest.
Read 23 tweets
Elsa Majimbo stan account Profile picture
Aug 23, 2018
"KOT don't care about injustice at home".

Who does this narrative serve? I am asking this cos anyone who has been a tweep for long enough has seen the evolution of KOT.
Protests and demos are important and good, but so is information warfare. KOT and Kenyans on social media now shape what mainstream media reports on.
I've lost count of issues that only became mainstream because KOT persisted.
Read 7 tweets

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