Microsoft Excel can be used to calculate income tax according to the income tax rates for your respective country. Figure 1 shows the most recent tax rates (2009) as issued by the Kenya Revenue Authority (KRA) domestic tax department.
Figure 1 : Income tax rates – KRA (2009)
For the purposes of income tax calculations using Microsoft Excel, the information provided in table 1 can be re-framed as follows:
There are many variations of the formula that can be used to calculate income tax. In order to learn how to calculate income tax using Microsoft Excel, I have prepared a simple formula that can compute tax rates for any amount according to the above given tax rates. From here, kindly click on the link below in order to access the Excel worksheet which I have used to calculate income tax according to the KRA guidelines Income Tax Calculator
I have made additional comments within the worksheet where necessary.
Do you require some assistance in doing some calculations for the financial section of your business plan using Excel? Kindly contact me at firstname.lastname@example.org
Want general assistance with your business plan? See an example of a business plan I have written according to the Small Business Association (SBA) framework here: Business Plan_iCraftKenya_Written by Alfred Njau_2014_Ver. 1