Solution-Determine his net tax liability

Determine his net tax liability

Reference no: EM133120981

Question - Hezekiah Mugo is an employee of Trimstar Ltd. During the year ended 31 December 2017, he reported the following information on his salary and benefits.

i. Basic pay Sh 150,000 (PAYE Sh 30,000)

ii. A company house fully furnished by the employer at a cost of Sh 200,000. The market rental value of the house is Sh 18,000 per month. He contributes 2% of his basic pay towards repair and maintenance of the house.

iii. He was paid an entertainment allowance of Sh 3,000 per day during the month of September 2017 for the 20 days that he was on official duties outside the country.

iv. He was reimbursed Sh 120,000 for medical expenses incurred during the year. The medical scheme covers all employees.

v. He contributes Sh 5,000 and Sh 12,000 per month to a house ownership savings plan (HOSP) and to a registered pension scheme respectively.

Required - Determine his net tax liability?

Reference no: EM133120981

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Determine his net tax liability

Reference no: EM133120981

Reference no: EM133120981

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