APRIL 2020 – KENYA
UNIFIED PAYE/NSSF PAYROLL RETURN | COVID-19 TAX MEASURES
It is important that employers note the following:
Notice to implement unified PAYE/NSSF payroll return and proposed COVID-19 tax measures
The Kenya Revenue Authority (KRA) has issued a public notice on its website informing employers that a unified payroll return has been developed for joint declaration and payment of Pay as You Earn (PAYE) and National Social Security Fund (NSSF) deductions.
At the same time, Kenya’s president announced tax measures to help the economy recover from the impact of the COVID-19 pandemic.
The PAYE/NSSF unified payroll return
Following this notice, KRA and NSSF informed all employers in the Large and Medium Taxpayers category that they are required to file their April PAYE and NSSF returns through the unified payroll return available on the KRA iTax system.
It is not clear how the payment will be made in the unified filing system since the filing and payment due dates have not been synchronised. The due date for PAYE is the 9th of the following month, while that of NSSF is the 15th of the following month.
- COVID-19 proposed tax measures
- 100% tax relief for gross income of up to KES24,000 per month.
- Reduction of the highest personal income tax rate (Pay as You Earn) by 5%, from 30% to 25%.
- Reduction of the Value-Added Tax (VAT) rate from 16% to 14%, effective 1 April 2020.
It should be noted that these pronouncements must be implemented through the required legal instruments in order to take effect, even though the president directed the treasury to implement the directives.
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