The Kenya Revenue Authority (KRA) says Kenyans can deduct school fees for upskilling and skill development when they calculate their taxes, which should ease the burden for many people facing high living costs.
The authority notes that paying school fees often strains household budgets, especially as Kenyans deal with a difficult economy and rising cost of living.
For working people and business owners who want to improve their skills and advance their careers, further education can be a key step.
KRA explains that school fees can count as an allowable deduction when the training programme focuses on skill development that supports business activities.
This means universities and colleges should issue an eTIMS invoice. The taxpayer can then submit that invoice to KRA when they file their returns.
KRA issued the clarification after a taxpayer asked whether fees they paid for further studies qualify as an allowable deduction.
“I am already working. I decided to go back to school to boost my skills and, hopefully, my pocket. Are the school fees I am paying allowable deductions? Are institutions of higher learning required to issue eTIMS?” the taxpayer asked KRA.
KRA replied that institutions of higher learning should issue an eTIMS invoice. The authority said the fees qualify as an allowable deduction if the programme targets skill development that supports business activities.
“Yes, they should issue an eTIMS invoice. It becomes an allowable deduction if the programme is geared for skill development to boost the business,” KRA said.
KRA’s guidance shows that not every school fee automatically qualifies for a tax deduction.
To claim a deduction, the course or training must link directly to improving skills that help generate income through a business or professional activity.
The update comes days before the June 30 deadline KRA set for taxpayers to file their annual tax returns.
The post KRA Says Some School Fees Are Tax Deductible, But There Is One Key Condition appeared first on Bossnana.
