In a bid to provide financial relief to Kenyans, the government has announced that National Hospital Insurance Fund (NHIF) contributors are among those eligible for tax relief. The tax authorities have issued a statement asking NHIF contributors to review their options and apply for reimbursement.
“The Benefits of Tax Reliefs for NHIF Contributors”
According to the statement, the Finance Act 2021 amended Section 31 of the Income Tax Act, making contributions to NHIF eligible for Insurance Relief starting from January 1, 2023. Personal and insurance reliefs are part of the tax reliefs offered in Kenya and reduce the amount of tax an individual has to pay. The compensations are granted on a monthly basis and are used for important national projects like education policies, health policies, or life insurance for residents.
“How to Claim Your Tax Relief for NHIF Contributions”
To claim your tax relief for NHIF contributions, taxpayers who filed their Income Tax Resident (ITR) Returns for 2022 should follow these steps:
- When filing returns, select “Yes” to the question “Do you have an Income Insurance Policy?”
- Enter your NHIF details under the iTax “Insurance Relief” sheet.
- Enter your NHIF PIN and card number and indicate that the policy is for health. You can retrieve your PIN and card number by sending “NHIF” as an SMS to 1550.
- Indicate that your designation is a self-policy and define the return periods, which should run from the beginning to the end of the year.
By taking advantage of these tax reliefs, NHIF contributors can reduce their tax burden and enjoy a little extra financial breathing room. So, don’t wait – review your options and apply for reimbursement today!