KRA bans manual filing of corporate taxes

The Kenya Revenue Authority (KRA) has banned manual filing of value added tax, pay-as-you-earn and income tax returns.

The services will now be only available on the iTax platform that KRA is implementing to improve efficiency and increase revenue collection.

“All VAT, PAYE and income tax filers are aised to file their tax returns due in August 2015 in the iTax system,” said the commissioner of domestic taxes Alice Owuor in a statement on Wednesday.

“Therefore, no manual VAT, PAYE and income tax returns will be accepted with effect from August 1, 2015 at any KRA office. It is therefore important for taxpayers to update their details in the iTax system in order to access all online tax services.”

Manual filing of income tax returns was banned earlier in the year, which prompted formal sector workers to register on the online system. Filing of VAT returns has also been online since last year.

More than two million taxpayers have listed on the online has system.

The iTax platform was launched in October 2013 in a bid to boost efficiency and ensure better compliance with tax laws.

It accords taxpayers the leeway of filing returns from any location with Internet connection, without having to physically visit the taxman’s premises to pay up or make returns.

The platform is meant to simplify tax administration by weeding out cheats and calculating amounts that taxpayers may owe the authority.
It also reduces errors that may be made during data entry from manual forms.

Kenya collected Sh1.001 trillion in the financial year ended June 2015, a 3.86 per cent increase from the previous year.

The Treasury has set KRA a target of Sh1.25 trillion in the current fiscal year that began this month, with the ongoing reforms expected to help the taxman achieve this goal.

“At the moment, KRA and government are automating and digitising most of the services and this will enhance collection and reduce revenue leakages,” Treasury secretary Henry Rotich said in his Budget speech.