Treasury programs tax relief of 15%.
All resident contributors will receive the anticipated tax cut from January 1, 2024, according to the Finance Bill 2023, with a yearly ceiling of Sh60,000.
The National Social Security Fund (NSSF) and NHIF have recently seen a considerable increase in monthly contributions.
From Sh200 in February, the monthly NSSF contributions have grown by more than four times to Sh1,080, while NHIF members will now pay 2.75 percent of their wages instead of the present limit of Sh1,700.
In reforms recommended by the Treasury to assist millions of retirees in securing financial comfort and access to Medicare, employees who contribute to post-retirement medical accounts will benefit from a 15% tax reduction.
All resident contributors will receive the anticipated tax cut from January 1, 2024, according to the Finance Bill 2023, with a yearly ceiling of Sh60,000.
Treasury programs tax relief of 15%
According to tax analysts at KPMG, “the proposed provision will encourage individuals to enroll in a post-retirement medical scheme to guard against rising medical costs in their post-employment years.”
From July 1, 2023, the also wants to exempt from tax any investment income from a post-retirement medical fund, even if that income does not come from a retirement benefits program.
It also suggests exempting from taxation any payment made in the form of money transferred from a post-retirement medical fund to a company that offers medical insurance.
The analysts at KPM stated that “this proposal is intended to encourage people to enroll in post-retirement medical schemes.”
This occurs at the same time as the State implemented a new law to increase worker contributions to social security and healthcare.
The National Social Security Fund (NSSF) and NHIF have recently seen a considerable increase in monthly contributions. From Sh200 in February, the monthly NSSF contributions have grown by more than four times to Sh1,080, while NHIF members will now pay 2.75 percent of their wages instead of the present limit of Sh1,700.