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Greetings!
Welcome to our Newsletter. In this issue we will focus mainly on tax matters. We give you a brief on the iTax registration and the new NHIF rates. You will also find a comprehensive April 2015 Tax Returns Calendar.
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iTax Registration
iTax is the system that has been developed to replace the current KRA Online system. It is a web-enabled and secure application system that provides a fully-integrated and automated solution for administration of domestic taxes.
KRA is now insisting that all taxpayers migrate to this platform and payments be made through the payment gateway at any of the KRA agent banks.
The iTax system provides the following services: Electronic filing and amending of tax returns using excel; Tax payments via KRA agent banks; Viewing of taxpayer account and ledgers; Viewing of tax returns filed; Monitoring cases of compliance, debt and audits; Making application for tax refunds; Making application for transfer of tax credits; Making application for payment plans; Making application for waiver of penalties and interest; Electronic application and issuance of tax exemption certificates; and E- Queries.
It is advisable to migrate to the iTax system to avoid inconveniences and risk of non-compliance.
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New NHIF Rates to take Effect from April 2015
Starting 1st April 2015, formal sector workers will start paying new NHIF rates following the publication of a gazette to this effect (Legal notice no. 14 2015, gazette on 13th February 2015).
In the new payment structure, workers earning Sh5,999 and below will pay Sh150 while those paid Sh100,000 and above remit the highest amount at Sh1,700. The self-employed, who have been paying Sh160 per month, will start paying Sh500 when the new rates take effect.
The table below shows the new rates.
| Gross Income (kshs) |
Proposed Premium |
| 5,999 |
150 |
| 6,000-7,999 |
300 |
| 8,000-11,999 |
400 |
| 12,000-14,999 |
500 |
| 15,000-19,999 |
600 |
| 20,000-24,999 |
750 |
| 25,000-29,999 |
750 |
| 30,000-34,999 |
900 |
| 35,000-39,999 |
950 |
| 40,000-44,999 |
1,000 |
| 45,000-49,999 |
1,100 |
| 50,000-59,999 |
1,200 |
| 60,000-69,999 |
1,300 |
| 70,000-79,999 |
1,400 |
| 80,000-89,999 |
1,500 |
| 90,000-99,999 |
1,600 |
| 100,000 and over |
1,700 |
| Self-employed (special) |
500 |
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April 2015 Tax Returns Calendar
For individuals and companies whose year end is December, April is a tax significant month as the final balance of tax for 2014 and the 1st installment tax for 2015 is due.
See April 2015 Tax Returns Calendar for more details.
For Tax Advisory Services, contact Beatrice Njambi on
bnjambi@mgkconsult.co.ke
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MGK CSR Initiative
On March 21, 2015, we visited Compassionate Hands for the Disabled, a children's home that caters for children with mental and physical disabilities. We made our donations of foodstuff and other consumables and spent the day playing and interacting with the children. Read More
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