In a notice, the Authority noted that the
deductions took effect on March 19, 2024, meaning all employers will be
deducted 1.5 per cent of their gross monthly salary which will be matched with
an equal amount from the employer.
Further, all employers will be required to
declare their levy and make payments at KRA agent banks or mobile money through
the eCitizen Paybill Number 222 222 or the USSD code *222#.
Kenyans who make contributions to the Levy
will be entitled to a housing tax relief at 15 per cent of the amount
deducted.
This is eligible for Kenyans who, after a year
of making the contributions and saving under the Boma Yangu platform
for a housing unit, shall make an application for relief.
KRA instructed Kenyans to comply with the
Affordable Housing Levy deductions, failure to which a penalty equivalent
to three per cent of the unpaid funds for every month will be charged.
"The due date for remittance of
Affordable Housing Levy is the 9th working day after the end of the month in
which the gross salary was due or gross income was received or accrued,"
the notice read in part.
"KRA clarifies that all employers are
required to declare the AHL under sheet 'M' of the PAYE return on itax;
generate a payment slip under the tax head 'agency revenue' and tax sub-head
'Housing Levy' and make payments at KRA agent banks or mobile money through
eCitizen Paybill Number."
"The employer's contribution to the
Affordable Housing is an allowable deduction under Section 15 of the Income Tax
Act."
The Kenyan DAILY POST.
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