Allow Mohamed Ebrahim Insurance Agency in conjunction with Ace Financial Advisory Limited set up your company’s Umbrella Retirement Scheme.
A duly registered Retirement scheme enables the company to have a tax deductible retirement benefit scheme contribution, which gives it a a edge to attract and retain staff. To the staff it enables a tax sheltered savings and investment, while also optimising the take home pay, as the contribution upto Kshs 20,000/= are deductible from their earning, giving a tax benefit. if at the 30% tax bracket its like the Kenya Revenue Authority saving 30% to your retirement savings.
For the company its a tax deductible expense, raising staff morale, enabling the company attract and retain talent.
And for the employee its a tax deferred savings/investment, which even on withdrawal has tax benefits like Lump-sum upto Kshs 600,000 not taxable and first Kshs 25,000/- of pension not taxed. Furthemore, as the pension contribution upto KShs 20,000 is allowable as a deduction against income, its like the taxman saving upto 30% on your behalf!