The Kenya Revenue Authority (KRA) has launched a compliance campaign, dispatching notices to businesses across the country to ensure tax obligations are met before the upcoming April 30 deadline.
The move marks an intensified effort by the taxman to bolster revenue collection and streamline tax administration as the government seeks to meet ambitious fiscal targets for the current financial year.
In recent days, taxpayers, particularly small and medium-sized enterprises (SMEs), have reported receiving prompts via email and SMS. These notices serve as reminders for businesses to reconcile their accounts and file any pending returns.
While the general individual income tax deadline falls on June 30, the April 30 date is a critical milestone for companies whose financial years ended in October. Additionally, it serves as the deadline for the first installment of taxes for businesses whose financial year begins in January.
A significant portion of the current compliance drive is centered on the Electronic Tax Invoice Management System (eTIMS). KRA has been adamant that all businesses, including those in the informal sector, must onboard onto the digital platform to ensure transparency in invoicing.
The authority has warned that businesses failing to comply with eTIMS requirements may face challenges in claiming input VAT, effectively increasing their tax liability. The notices sent out this week specifically urge businesses to ensure their records on the iTax portal align with their physical transaction logs.
Under current regulations, failure to submit returns by the statutory deadline results in automatic fines, while unpaid tax balances accrue interest at a rate of 1% per month.
KRA has increased its support staff at various Huduma Centres and KRA offices nationwide. Taxpayers are encouraged to utilize the “M-Service” mobile app for simplified filing or visit the iTax portal to check for any outstanding “Debt and Compliance” issues.