25/12/2025
YOUR PAYMENT NARRATION CAN SAVE YOU FROM PAYING EXTRA TAX IN 2026
In 2026, every money that enters your bank account is questioned.
Tax officers don’t guess. They read the payment narration.
If the narration is unclear, the money may be treated as business income, even when it is not.
But when the narration is simple, honest, and clear, you avoid paying unnecessary tax.
Write it well. Stay safe. Pay only what the law requires.
✅ SIMPLE AND CORRECT PAYMENT NARRATIONS (EASY FOR EVERYONE)
👨👩👧👦 FAMILY AND PERSONAL MONEY
1. Family sends you money
Narration: Gift / Family support
2. Spouse sends money for the home
Narration: Household support
3. Money for birthday, wedding, naming ceremony
Narration: Personal gift
4. Allowance from parents or guardian
Narration: Personal allowance
🤝 REFUNDS AND REPAYMENTS
5. Someone pays you back what they owed
Narration: Refund / Reimbursement
6. You are returning money to someone
Narration: Refund paid
7. You paid on behalf of someone and they paid you back
Narration: Expense reimbursement
💰 LOANS AND CONTRIBUTIONS
8. Money you borrowed from someone
Narration: Loan received
9. You are paying back a loan
Narration: Loan repayment
10. You put your own money into your business
Narration: Capital contribution
11. Business owner takes money out of business
Narration: Owner’s withdrawal / Drawings
🏦 TRANSFERS BETWEEN YOUR OWN ACCOUNTS
12. Moving money between your accounts
Narration: Personal transfer
13. Saving money in another account
Narration: Personal savings
🧾 BUSINESS AND DAILY TRANSACTIONS
14. POS customer transfer
Narration: POS transaction
15. Sales of goods
Narration: Payment for groceries
Payment for two cartons of Indomie
16. Payment for services you rendered
Narration:
Payment for hair styling
Payment for graphic design service
17. Part payment for a job
Narration: Part payment for [service]
18. Full and final payment
Narration: Full payment for [service]
🏠 RENT, SALARY, AND FEES
19. Rent payment
Narration: House rent payment
20. Salary or wages
Narration: Salary for May 2026
21. School fees
Narration: School fees payment
22. Cooperative contribution
Narration: Cooperative savings
⚠️ IMPORTANT REMINDER
❌ Avoid narrations like:
“Transfer”
“Payment”
“Thanks”
“No narration”
These can raise questions during tax filing.
In summary:
If the money is not income, say what it truly is.
If it is income, describe it clearly.
Because in 2026,
your narration is your first line of defense.
Ignorance of the law is no excuse.
Moses Abalaka
Tax Consultant