As the deadline for filing annual tax returns draws closer, the Kenya Revenue Authority (KRA) has clarified that Kenyans paying for courses aimed at improving their professional skills may be eligible to claim the fees as allowable tax deductions under specific conditions.
The clarification offers some relief to taxpayers who are investing in further education despite the rising cost of living and challenging economic conditions.
According to KRA, fees paid for training or academic programmes can qualify as allowable deductions if the studies are directly linked to developing skills that support a taxpayer’s business or income-generating activities.
The tax authority explained that institutions offering such programmes, including universities and colleges, are required to issue an eTIMS invoice, which taxpayers will need when filing their tax returns.
The guidance came after a taxpayer sought clarification on whether tuition fees 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 its response, KRA confirmed that higher learning institutions should issue eTIMS invoices and noted that the fees may qualify for tax deductions if the course is intended to strengthen skills that support 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.
However, the authority stressed that not every education expense automatically qualifies for tax relief. To be considered an allowable deduction, the course or training must be directly connected to improving skills used in generating business or professional income.
The clarification comes at a time when many Kenyans are enrolling in postgraduate programmes, professional certifications and specialised courses to improve their qualifications and enhance their earning potential.
It also comes just weeks before the June 30 deadline for taxpayers to file their annual tax returns with KRA.