Tax computation adjustments schedule

What the tax computation adjustments schedule does

Accounting profit is not taxable profit. List the items that must be added back, such as depreciation and fines, and the items that may be deducted, such as capital allowances, and the schedule works out the taxable profit and the tax at the corporation tax rate, with each adjustment listed so KRA or your accountant can follow the working.

Who it is for

Accountants, finance managers and company directors who prepare the tax computation, and sole traders who want to see the steps.

How to use the workbook

1. Type the profit from your accounts at the top.
2. List each adjustment and choose add back or deduct.
3. Read the adjusted profit and the tax.
4. Keep the schedule with the return and the supporting documents.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Profit per accounts to taxable profit
• Add-backs and deductions listed one by one
• Tax at the corporation tax rate
• Total add-backs and deductions at the top
• Summary of adjustments with a chart

The workbook has these sheets: Instructions, Adjustments, By type, Rates. The main table has the columns Item; Type; Amount; Effect on profit. 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

• Add back depreciation and deduct capital allowances.
• Add back fines, penalties and private expenses.
• Keep a note of the reason for each adjustment.
• Have a tax adviser review the schedule before filing.

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, Capital allowances 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.

Related guides, calculators and templates

• Free calculator: Corporation Tax Calculator
• Free calculator: Capital Allowances Calculator
• Guide: How to choose accounting software for a small business
• Guide: A repairs budget and sinking fund for landlords
• Guide: How to run a month-end close for a small business
• Another template: Capital allowances schedule by class
• Another template: Corporation tax computation workbook
• Another template: Director salary and dividend tax planner

Need something different? Request a custom template, browse all guides or see every Excel template.