Kenyans seeking a Tax Compliance Certificate will now face tougher requirements after the Kenya Revenue Authority (KRA) linked approval of the document to compliance with the electronic Tax Invoice Management System (eTIMS) and stricter tax filing conditions.
The developments follow the taxman's announcement on Friday that it had unveiled new changes to the process of obtaining a Tax Compliance Certificate (TCC), tightening the requirements for individuals and businesses seeking the crucial document.
It will now be mandatory for all non-individual entities and individuals earning income beyond employment to comply with the Electronic Tax Invoice Management System (eTIMS) or its predecessor, TIMS, according to the authority.
New Requirements
Under the new rules, applicants for a TCC must first be fully registered and compliant on eTIMS if they are engaged in business.
This means that businesses that are not yet onboarded to the eTIMS platform will not qualify for a compliance certificate until they meet the requirements.
KRA further directed that all taxpayers must file their returns for all applicable tax obligations on or before the due dates. Those with pending tax liabilities will also be expected to either settle them in full or enter into a formal payment plan with the tax agency.
“The payment plan, once approved, enables the taxpayer to continue with the self-service process of TCC application,” the notice stated, adding that those with unapproved or defaulted payment arrangements will not receive the certificate.
Compliance With VAT Regulations
At the same time, the authority also emphasised that taxpayers must be fully compliant with Value Added Tax (VAT) regulations, including those under the VAT Special Table.
This measure is intended to ensure businesses maintain consistent compliance across all tax categories, according to the taxman.
According to tax experts, the changes are expected to complicate matters for VAT-registered businesses flagged for missing trader issues. Under the new framework, KRA will require full VAT compliance, including a clean record under the VAT Special Table.
This means that businesses linked to fraudulent or non-remitting suppliers will be considered non-compliant, potentially blocking or delaying the approval of their Tax Compliance Certificates until such irregularities are resolved.
Meanwhile, applicants will still be required to continue applying for the certificate through the iTax platform and do the verification using the online certificate checker.
