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Corporation tax computation workbook

Move from accounting profit to taxable profit and corporation tax: add back disallowed costs, deduct allowances, use losses and net off instalments.

Corporation tax computation workbook template

A company pays tax on taxable profit, not accounting profit. This workbook starts from the profit in your accounts, adds back expenses the tax law does not allow, deducts capital allowances and exempt income, applies losses brought forward, charges tax at the corporation tax rate and subtracts the instalments you have paid, giving the balance due or the refund.

Finance managers, accountants and directors of limited companies who prepare the annual income tax return or want to estimate the tax bill before the year ends.

What is included

  • Adjustments list with add backs and deductions
  • Taxable profit after losses brought forward
  • Tax at the corporation tax rate
  • Instalments netted off for the balance
  • A clear layout you can attach to the return

Screenshots

  • Adjustments to accounting profit of Corporation tax computation workbook

How to use it

  1. Check the corporation tax rate on the Rates sheet.
  2. List each adjustment on the Adjustments sheet, marked as an add back or a deduction.
  3. On the Computation sheet, enter the accounting profit, losses brought forward and instalments paid.
  4. Read the taxable profit, the tax and the balance payable or refundable.

Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.

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What the corporation tax computation workbook does

A company pays tax on taxable profit, not accounting profit. This workbook starts from the profit in your accounts, adds back expenses the tax law does not allow, deducts capital allowances and exempt income, applies losses brought forward, charges tax at the corporation tax rate and subtracts the instalments you have paid, giving the balance due or the refund.

Who it is for

Finance managers, accountants and directors of limited companies who prepare the annual income tax return or want to estimate the tax bill before the year ends.

How to use the workbook

  1. Check the corporation tax rate on the Rates sheet.
  2. List each adjustment on the Adjustments sheet, marked as an add back or a deduction.
  3. On the Computation sheet, enter the accounting profit, losses brought forward and instalments paid.
  4. Read the taxable profit, the tax and the balance payable or refundable.
  5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

  • Adjustments list with add backs and deductions
  • Taxable profit after losses brought forward
  • Tax at the corporation tax rate
  • Instalments netted off for the balance
  • A clear layout you can attach to the return

The workbook has these sheets: Instructions, Computation, Adjustments, Rates. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

  • Keep a note of the reason for every add back; KRA may ask.
  • Take capital allowances from your asset register, not from the accounts depreciation.
  • Check that losses brought forward are within the time allowed to use them.
  • Compare the estimate with the instalments paid during the year.

Why keep this record

Most tax trouble comes from late or missing records rather than from the tax itself. When the figures are collected as they happen, preparing a return becomes a matter of copying totals, not of searching for receipts. A workbook that follows the same layout as the return also makes it easier to spot a number that looks wrong before KRA does, and to explain it if asked.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Tax figures change with each Finance Act, so check the Rates sheet against KRA's current guidance before you file. Keep the supporting documents with the workbook, and keep each year's copy for at least five years in case KRA asks for proof.

Read the KRA filing calendar for small businesses for the wider picture. Free calculators that go with it: Corporation tax calculator, Instalment tax calculator. See more tax templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

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