The Kenya Revenue Authority (KRA) has explained that school fees for upskilling or skill development can be deducted, providing relief to many Kenyans struggling with high living costs.

🇰🇪 Breaking It Down

Paying school fees can put increasing pressure on household finances, especially at this time when Kenyans are grappling with a tight economy and rising cost of living.

For employed Kenyans and business owners who still want to upgrade their skills and climb the career ladder, they must further their education.

According to the authority, school fees can qualify as an allowable deduction if the programme is geared towards skill development that supports business activities.

📌 What You Need to Know

This means that institutions such as universities and colleges must issue an eTIMS invoice , which the taxpayer will submit to the authority when filing returns.

The clarification followed a taxpayer seeking guidance from the taxman on whether fees paid for further studies could be treated 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.

In response, KRA stated that institutions of higher learning should issue an eTIMS invoice. The fees could qualify as an allowable deduction if the programme is geared towards 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.

The response indicates that not all school fees automatically qualify for tax deductions.

📰 Source: Kenyans.co.ke