Tubonge Tax

Unpacking KRA's eTIMS: A New Era for Tax Compliance in Kenya for Businesses & Individuals.

What is eTIMS?

The eTIMS system is KRA's innovative response to the challenges of tax compliance, designed to facilitate a seamless, efficient, and transparent process. By automating tax invoicing, eTIMS significantly reduces the administrative burden on businesses and individuals, ensures accuracy in tax reporting, and combats tax evasion. This system is not just a step forward in digitalization; it's a major transition towards enhancing the ease of doing business in Kenya.

The Significance of eTIMS.

With a deadline for sign-ups looming on the 31st of March 2024, the urgency to understand and adopt eTIMS has never been more critical. The platform's development was driven by a need to align tax processes with the dynamic nature of modern business and individual operations, offering a solution that is both accessible and comprehensive.

n this episode, we unpack the Tax Amnesty Programme, which provides taxpayers with an opportunity to rectify their tax affairs while avoiding severe penalties and interest.

The primary goal of the Tax Amnesty Programme is to encourage taxpayers to come forward and disclose any undisclosed income, settle their outstanding tax liabilities and enjoy 100% amnesty on penalties and interest

The Tax Amnesty Programme typically covers various types of taxes, including income tax, value-added tax (VAT), corporate tax, and other taxes under domestic taxes. It applies to both individual taxpayers and businesses.

Where a person has paid all the principal taxes that were due by December 31, 2022, they will be entitled to an automatic waiver of the penalties and interest related to that period and will not be required to make an amnesty application.

Where a person has not paid all the principal taxes accrued up to December 31, 2022, they will be required to apply to the Commissioner for amnesty on interest and penalties and propose a payment plan for any outstanding principal taxes, which should be paid no later than June 30, 2024.

The main objective of Ushuru Mashinani is to create awareness and help customers understand their tax obligations by providing tax education and services to the citizens to enhance revenue collection at the grassroots level. Ushuru Mashinani recognizes the diverse needs and priorities of different local communities and offers customized solutions that are best suited to these audiences.

eTiMS is a flexible solution that offers a variety of integration solutions, including the use of mobile phones, windows, tablets, POS online solutions and ERP systems.

If you fail to file your tax returns on time, you may be subject to penalties and interest charges. These charges can add up quickly, making it even more difficult to get your tax compliance certificate.

Filing your income tax returns annually is an important responsibility that will help a taxpayer claim refunds, avoid penalties and interest, and provide proof of income when needed.

By law all wines, spirits, beer, bottled water, juices, soda, energy drinks, cigarettes and other tobacco products must be marked with excise tax stamps.

In this episode, our expert Soila is breaking it down for easy understanding of the Soma Label App. Remember excise tax stamps possess a number of security features and are all uniquely numbered with encrypted data codes. The codes are linked to a track & trace system holding information for each product individually.

With VTDP, you can make a disclosure about your individual income tax, Pay As You Earn, (PAYE) withholding taxes, capital gains tax, value added tax, turnover tax, advance tax, excise duty, rental income tax and corporation tax. It gives an opportunity to everyone to come forward voluntarily and disclose the taxable income.

Kenya Revenue Authority (KRA) continues to stand out as a socially inclusive institution and an employer of choice for many reasons. Diversity and social inclusion are definitely part of this discourse.

We understand the unique needs of an inclusive workforce, and believe that persons with disabilities should be provided with a supportive environment to enable them express their unique abilities and talents so that they live a decent life and none is left behind," said. Patience Njau-Nyaga (Mrs) the Deputy Commissioner Human Resource.

The deadline for the requirement by taxpayers to comply with regulations of the Tax Invoice Management System (TIMS) has been extended to 30th September 2022. The deadline extension is an administrative decision necessitated by taxpayers' request for more time to acquire and activate their TIMS devices in compliance with Electronic Tax Invoice (ETI) Regulations that were gazetted on 25th September 2020, Legal Notice 189.

The overall objective of introducing TIMS vide VAT (Electronic Tax Invoice) Regulations, 2020 is to increase VAT compliance, minimize on VAT fraud and increase tax revenue.

The Tax Summit is an annual dialogue platform for exchanging ideas, knowledge, insights and solutions to support efficiency and effectiveness in tax administration. This year's Summit is the 8th and is themed "Now & Beyond: Enhanced Service Delivery to Improve Tax Compliance'' will drive public and international dialogue around entrenching risk-based tax compliance, enhancing trade facilitation, and positioning KRA as a service-driven agency for the future.