Benefits
There are several benefits that Employers can reap by being compliant with the NHT. Compliant Employers will be able to obtain a Clearance Letter from the NHT, which is a prerequisite for a company to be issued a Tax Compliance Certificate (TCC).
Another benefit is that the Employer’s contribution to the NHT qualifies for tax exemption, as it should be treated as expenses incurred in acquiring income. Also, all Employers who paid NHT contributions between 1976 and 1979 are entitled to an annual bonus on these contributions.
Penalties
Presently, there is a penalty charge of 20% per annum for late submissions of payments. Additionally, where payments are deemed delinquent (usually outstanding for more than a year), a surcharge of 10% on the penalty plus any arrears is also applied.
Where Employers are found to be withholding information required by the NHT in relation to contributions or Annual Returns, they may be fined an amount of $30,000 or three times the amount of the unpaid contributions, whichever is greater.