The principles of taxing SACCOs are a radical departure from the general principles of taxing income. The taxable income of a SACCO is the aggregate of

1. fifty per centum of its gross income from interest (other than interest from its members);
2. rental income ascertained as per the provisions of the act;
3. gains chargeable to tax under section 3(2)(f);- essentially capital gains
4. any other income (excluding royalties) chargeable to tax

Sec 19A(4)