JUNE 2023 – KENYA
FINANCE BILL and NHIF REGULATIONS, 2023
It is important that employers note the following:
The Finance Bill, 2023
The Finance Bill, 2023 was tabled before the National Assembly on 4 May 2023 for consideration and enactment into the Finance Act.
The proposed changes to the Income Tax Act include:
• Changes to the taxation of branches of companies;
• Introduction of digital assets tax;
• Withholding tax (WHT) to be paid and accounted for within 24 hours;
• Introduction of WHT on marketing services and digital content monetisation;
• Reduced rate of residential rental income tax;
• Mortgage refinance companies classified as financial institutions;
• Tax-free treatment of mileage reimbursements for employees;
• Allow the tax treatment of club entrance and subscription fees paid by employers on behalf of employees to be considered as deductible expenses in the employer’s income calculation;
• Deferral of taxation of shares awarded to employees of eligible start-ups;
• Introduction of tax relief on post-retirement medical fund contributions;
• An introduction of a 3.0% levy on the employee’s gross monthly income, with a matching contribution from the employer that will be remitted to the National Housing Development Fund (NHDF);
• An introduction of a 35% PAYE rate.
The proposed changes are expected to take effect on 1 July 2023 after assent by the President.
To view the Finance Bill, 2023, follow the link.
National Health Insurance Fund (NHIF) Regulations, 2023
Following the public participation held on the draft regulations in 2022, NHIF has taken into account the feedback received and consolidated the draft Regulations, 2023.
The draft National Health Insurance Fund Regulations, 2023 were published on 1 May 2023 and form part of the draft NHIF Amendment Act.
The following areas are stipulated in the regulations:
• Registration of Contribution and Beneficiaries
• Contributions to the Fund
• Access to Benefits by Contributor and Beneficiaries
• Empanelment
• Claims and Benefits
• Centralised Health Care Provider Management System
• Renovation and Saving Provisions
• First Schedule (Forms)
• Registration Forms
• Amendment Forms
• Empanelment as Healthcare Provider
• Second Schedule (Services Rendered by Empanelled and Contracted Healthcare Providers)
To view the draft NHIF Regulations, 2023, follow the link.
Contact our legislation team on info@crs.co.za if you require any additional information.
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