What is income Tax.
Income tax is a direct tax that is imposed on income derived from Business, Employment, Rent, Dividends, Interests, Pensions among others.
What is individual Income Tax.
Individual Income Tax is the amount charged for each year of income on all the income of a person, either resident or both resident and non-resident, which accrued in or was derived from a particular country.
Income Tax in Kenya.
Each and every employed Kenyan citizen is subject to taxation by the Kenyan revenue authority and should file tax returns at the end of every financial year which normally comes in June.
How is Tax Paid In Kenya.
The tax is automatically deducted from your gross salary, business profits, investments and assets. Other charges deducted from the salary before tax may include entities like pension, health coverage, insurance and others charges depending on the country’s policies and legal requirements. Those who are neither employed nor running any business are expected to file tax returns.
Kenya’s ranking on world economy.
Kenya has been listed among the countries with the highest income tax in Africa. Before the onset of COVID-19 pandemic, Kenya was ranked as one of the fastest growing economies in Africa, with an annual average growth of 5.9% between 2010 and 2018. Kenya recently reached lower-middle income status with a GDP of $95 Billion, and has successfully established a diverse and dynamic economy.
This article looks into a list of African countries with the highest income tax.
1. Ivory Coast- 60%.
The Country charges the tax rates on all resident and non-resident income from business, employment or investments.
2. Chad- 60%.
An individual’s income in Chad is subject to a tax of 60% The taxable income is made up capital income and work incomes.
3. South Africa- 45%.
An individual’s income in South Africa is a subject to a charge of 45% for both non-resident and resident citizens.
4. Guinea- 40%.
The Western Africa country charges the tax rates on all resident and non-resident income in the country.
5. Congo- 40%.
The Sub-Saharan country charges the rates on the global income of its residents and taxes non-residents on their Congolese income.
6. Mauritania- 40%.
The country charges the rates on all resident and non-resident income in the country.
7. Uganda- 40%.
The East African country charges the income tax rates on all resident and non-resident income from employment, business or investment.
8. Senegal- 40%.
Senegal charges the tax rates on all resident and non-resident income from employment and businesses.
9. Zimbabwe- 40%.
The country charges the rates on all income earned in the country by resident and non-residents.
10. Morocco- 38%.
Morocco charges the stated tax on individuals who are residents in the country.
11. Zambia- 37.50%.
The country charges the tax rate on both the resident and non-resident individuals.
12. Namibia- 37%.
Namibia charges these rates on all income earned in the country.
13. Algeria- 35%.
This applies to all income earned in the country by both residents and non-residents.
14. Ethiopia- 35%.
The Eastern African country charges the rate on both the resident and non-residents.
15. Equatorial Guinea- 35%.
This is applicable to all income earned in the country.
16. Cameroon- 35%.
This applies to all resident and non-resident income earned in the country.
17. Tunisia- 35%.
The country charges the rates on all income earned in the country.
18. Gabon- 35%.
This applies to all income earned in the country.
19. Swaziland- 33%.
The income tax rate is applicable to all income earned in the country.
20. Mozambique- 32%.
The rate is applicable to all income earned in the country.
Read: List of Commercial Banks Allowed to Operate in Kenya
21. Gambia- 30%.
Gambia applies the same mode of taxing as her neighbor country, Congo.
22. Kenya- 30%.
The East African Country taxes its residents on earned income and taxes non-residents only of income earned within the country.
23. Rwanda- 30%.
Rwanda taxes employment income, business income and investment income for both resident and non-residents at equal rates.
24. Malawi- 30%.
This rate applies to all income earned in the country.
25. Ghana- 25%.
Closing the list of top ten high income tax countries in Africa is the west African country Ghana, which taxes resident individuals of any type of income, whether business, employment or investment regardless of reliability of the source of income.
