Step-by-Step Guide for Non-PAYE Employers and Individuals

 


Navigating the Affordable Housing Levy 2024

 The Affordable Housing Act (AHA) 2024, effective from March 2024, introduces the Affordable Housing Levy (AHL), aimed at funding affordable housing initiatives across the nation. This levy applies to individuals and non-individuals at a rate of 1.5% on either gross salary or gross income received or accrued. At RWK & Associates, we are committed to helping you understand and comply with this new legislation. This newsletter outlines key provisions of the AHA 2024 and provides a stepby-step guide to managing your AHL obligations efficiently.

Understanding the Affordable Housing Levy

The AHL mandates a 1.5% levy on gross salary or gross income. Notably, employers who are already deducting and paying AHL from their employees' salaries are exempt from paying the levy on their gross income. This provision ensures that there is no double taxation, simplifying compliance for employers. The levy is due by the 9th working day after the end of the month in which the income was earned. Failure to comply results in a 3% monthly penalty on the unpaid amount, emphasizing the importance of timely payments.

Step-by-Step Guide for Non-PAYE Employers and Individuals

For employers without PAYE obligations and individuals receiving gross income, the payment process involves several straightforward steps. Begin by logging into your iTax profile and navigating to the payment registration section. Select 'Agency Revenue' under the 'Tax Head' and 'Housing Levy' under the 'Tax Sub Head.' Enter the relevant tax period and the amount payable, then add the payment details and generate a payment slip. This slip can be used to make payments through the preferred channels, ensuring compliance with the AHA 2024 requirements.

Conclusion

The Affordable Housing Levy represents a significant step towards funding affordable housing projects. At RWK & Associates, we are dedicated to ensuring that our clients understand and comply with these new requirements. By following the guidelines provided, you can manage your AHL obligations effectively and avoid penalties. Should you need any assistance or further clarification, please do not hesitate to contact us. We are here to support you through this transition and ensure your compliance with the Affordable Housing Act 2024.

Book a Free consultancy with us here

Visit our website to learn more

Follow our pages Facebook , Twitter, Linked In , Instagram , TikTok


Comments

Post a Comment

Popular posts from this blog

Clarification On Taxation Of Meals Provided By Employers

Image
Background:  The Kenya Revenue Authority (KRA) issued a Technical Circular (Ref: 1005/1) in March 2017, outlining guidelines for the taxation of employment income, particularly regarding benefits provided to employees. Among these benefits, the circular stated that meals provided to employees up to a value of Kshs. 48,000 per year per employee were not subject to tax, in accordance with Section 5(4)(f) of the Income Tax Act. Clarification:  Recently, there has been confusion regarding the interpretation and application of this provision. The KRA has clarified that if an employer provides meals exceeding the value of Kshs. 48,000 per annum per employee, the entire value of the meal becomes taxable income for the employee. Essentially, any amount spent on meals beyond the specified limit is now subject to taxation under the Income Tax Act. Implications for Employers: This clarification places the responsibility on employers to ensure compliance with tax regulations regarding emp...
Read more

Understanding Advance Tax: Essential Information for Vehicle Owners.

Image
  Welcome to the latest edition of the RWK & ASSOCIATES CPA(K) Newsletter. In this issue, we focus on Advance Tax , a critical requirement for all commercial and public service vehicle owners. Understanding how this tax operates and how to manage it effectively can save you time and avoid unnecessary complications. Advance Tax is a mandatory prepayment needed before a commercial or public service vehicle can be registered or licensed. The tax amount is determined by the vehicle's type and capacity. For example, vans, pick-ups, trucks, and similar vehicles incur a fee of Kshs. 2,500 per ton of load capacity or kshs 5000 whichever is higher. In contrast, saloons, station wagons, mini-buses, buses, and coaches are charged Kshs. 100 per passenger capacity per month or kshs 5000 annual amount whichever is higher. It is important to note that Advance Tax is not a final tax. Taxpayers must report this payment in their annual income tax returns and settle any additional taxes that ...
Read more

Summary Of The Key Proposed Changes In The Finance Bill 2024

Image
  Income Tax Act: • Introduction of Motor Vehicle Tax at 2.5% of the vehicle value payable upon insurance issuance. • Withholding tax on goods supplied to public entities at 3% for residents, 5% for non-residents. • Taxation of income from digital marketplaces/platforms at 20% for non-residents, 5% for residents. • Introduction of Significant Economic Presence Tax at 30% for non-residents. • Minimum top-up tax for resident entities in multinational groups. • Deductibility of SHIF, post-retirement medical funds, and the affordable housing contributions. • Investment deduction for spectrum license purchase at 10%. • An eco levy for manufacturers and importers will be introduced. • Imported motorcycles beyond a certain price will be taxed at 10% of value instead of a flat rate. • Taxation of interest income from infrastructure bonds for residents. Value-Added Tax Act: • VAT exemptions on bread will be removed. • Removal of VAT exemptions for financial services such as credit and debit...
Read more