A Message from the Commissioner General
In these Tough Times, We are With you
Payment of Taxes during COVID-19
Taxes play a fundamental role in Kenya’s sovereignty. We significantly fund our national budget though Taxes. To mitigate the effects of COVID – 19 to the Kenyan economy, the Government has implemented the Tax Law (Amendment) Act, 2020 with effect from 25th April, 2020 as follows:
- Reduction of Personal Income Tax top rate (PAYE) from 30% to 25%
- 100 % Tax Relief for persons earning up to Ksh. 24,000
- Reduction of Resident Corporate Income Tax rate from 30% to 25%
- Reduction of Turnover Tax rate for SMEs from 3% to 1%
- Immediate reduction of VAT rate from 16% to 14%
Further to this, the Government has implemented the following measures:
• Suspension of all listing for all persons including companies at Credit Reference Bureau (CRB)
• Lowering of Central Bank Rate (CBR) to 7.2%
• Lowering of Cash Reserve Ration (CRR) to 4.2%
• Central Bank of Kenya to offer flexibility to banks on loans that were active as of March 2020 to maintain liquidity levels
• Facilitating expedited payment of VAT Refunds by allocating an additional Ksh. 10B
• Setting up a fund to which players in the Public and Private Sector are contributing in support of Government efforts.
As the Country faces this global health challenge, all citizens are called upon to play their part. Therefore, we are encouraging all taxpayers to continue paying all taxes due to support the Government in provision of critical services. Taxpayers are required to correctly determine their tax liabilities, pay, file and remit the same in a timely manner as follow:
• Individual Income Tax by 30th June, 2020
On a monthly basis:
- Value Added Tax (VAT by 20th of every month
- Pay As you Eran (PAYE) by 9th of the month
- Residential Rental Income Tax by 20th of every month
- Witholding Value Added Tax (WVAT) by 20th of every month
- Withholding Tax (WHT) by 20th of every month
On its part, KRA will continue supporting individuals and businesses in accessing our services to ensure all taxes are paid in a timely manner at this critical time. KRA will decisively handle any matter that pertains to deliberate non-payment of taxes. In the event that a taxpayer is not able to honour the agreed payment plan, it’s mandatory that the same is reviewed and agreed with our debt team.
KRA appreciates that taxpayers are required to provide proof of transaction in response to VAT inconsistency reports. Taxpayers are supposed to submit documents and in some instances appear in person at our premises. This is not tenable in the current environment. To mitigate this, KRA has deferred the physical submission of documents and appearance before our teams. Taxpayers will be duly notified of when they can appear in person. In the interim, taxpayers are advised to submit evidence of transactions through firstname.lastname@example.org.
We are also encouraging taxpayers to access our tax services on our online platforms.
• For Domestic Taxes and all frequently requested services, log on to https://itax.kra.go.ke/KRA-Portal/
• For Customs related taxes, log on to iCMS (Integrated Customs Management Systems) and the Simba System
• For Supply Chain Management (SCM) or e-procurement, log on to http://www.kra.go.ke/en/tender
• For additional support, call our Contact Centre on Tel: 020 4 999 999, 0711 099 999 or Email: email@example.com
Commissioner General, KRA
Measures to facilitate tax services to the public in light of the Coronavirus Disease (COVID-19) pandemic.
- To minimize congestion at KRA Tax Service Offices, taxpayers are encouraged to access KRA services through online platforms.
- In order to avoid the risk of transmission through physical handling of money, KRA also encourages taxpayers to make all transactions through mobile money.
- The Authority has also installed hand sanitizers at all Tax Service Offices and will ensure that all premises are regularly cleaned and disinfected.
- Alternative Dispute Resolution (ADR) sessions can now be conducted online. Learn more here.
- KRA, as the Lead Agency at the Land Borders, has put in place measures to ensure safety and trade facilitation. Learn more here.
- Preventive measures have also been put in place for handling of procurement activities for all suppliers. Read more here.
- Service of Court and Tax Appeal Tribunal documents shall now be done through LegalServices@kra.go.ke
- All documents in support of objections to VAT Automated Audit (VAA) Assessments for VAT Returns for the period January 2018 to May 2018 should be scanned and sent to VAAlegalservices@kra.go.ke