RUTO hataki mchezo as KRA clears air over Housing Levy Deductions after High Court ruling – Look!


 Friday, March 22, 2024 - The Kenya Revenue Authority (KRA) has issued a clarification over the Affordable Housing program, following the High Court ruling which gave the green light for President William Ruto’s pet project.

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."

Post a Comment

0 Comments