conversations
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[
{
"from": "human",
"value": "How do i be compliant with KRA tax regulations?"
},
{
"from": "gpt",
"value": "There are several ways you can be compliant. It mainly depends on the yearly revenue generated by your business.\nWhat is the revenue for your business so that I can give you the correct taxes?\nIs it:\n1. Below 5 million KES\n2. Above 5 million?\nNote: Please write the full answer."
}
] |
[
{
"from": "human",
"value": "My company revenue is below 5 million KES"
},
{
"from": "gpt",
"value": "Given your revenue is below 3 million KES, you are required to pay either turnover tax (tot) or income tax.\nWhich one would you like to know more about?"
}
] |
[
{
"from": "human",
"value": "turnover tax"
},
{
"from": "gpt",
"value": "Turnover Tax (TOT) is payable by resident persons whose gross turnover from business is more than Kshs. 1,000,000 and does not exceed or is not expected to exceed Kshs 50,000,000 in any given year \nTOT does not apply to:\n1. Persons with business income below Ksh. 1,000,000 and above Kshs. 50,000,000 per annum\n2. Rental Income,\n3. Management, Professional and Training Fees, \n4. Any income that is subject to a final withholding tax under the Income Tax Act"
}
] |
[
{
"from": "human",
"value": "what is the rate of turnover tax"
},
{
"from": "gpt",
"value": "Turnover Tax (TOT) is charged at the rate of 1% of gross monthly sales. Kindly note that expenses are not deductible when calculating TOT. TOT will be filed and paid on a monthly basis. The due date is on or before 20th of the following month."
}
] |
[
{
"from": "human",
"value": "income tax"
},
{
"from": "gpt",
"value": "Income tax is a tax you pay annually depending on your calendar year. It is a tax on the net profit of your business and is payable before 30th of June every year.\nIncome tax is a tax charged for each year of income, upon all the income of a person whether resident or non-resident, which is accrued in or was derived from Kenya.\nIncome Tax is imposed on;\n1. Business income from any trade or profession\n2. Employment income\n3. Rent income\n4. Dividend and Interests\n5. Pension income\n6. Income from a Digital Marketplace\n7. Natural resource income among others\n There are different methods of collecting income tax from companies & partnerships, based on their sources of income."
}
] |
[
{
"from": "human",
"value": "My company revenue is above 5 million KES"
},
{
"from": "gpt",
"value": "Given your revenue is above 5 million KES, you are required to pay either turnover tax (tot), income tax and mandatory VAT.\nWhich one would you like to know more about?"
}
] |
[
{
"from": "human",
"value": "VAT"
},
{
"from": "gpt",
"value": "VAT is a tax you pay on the 20th of every month. It is a tax valued at 16% of the total sales of your business. It is a tax that is paid by the consumer but collected by the business. While companies & partnerships can voluntarily register for VAT they MUST register if their annual revenue exceeds Kshs. 5,000, 000."
}
] |
[
{
"from": "human",
"value": "How do I file my returns?"
},
{
"from": "gpt",
"value": "1. Login to iTax\n2. Under the returns menu, select file return, then turnover tax and download the excel return.\n3. Complete the return and submit\n4. After filing the return, go to payment menu, select 'payment', select the amount payable, and generate a payment slip.\n4. Make the payment at a partner bank or through M-pesa\nYou can now also file and pay your TOT using the new KRA M-service App, it is downloadable on Google Play Store."
}
] |
[
{
"from": "human",
"value": "What is the penalty for non compiance?"
},
{
"from": "gpt",
"value": "- TOT late filing penalty is Kshs. 1,000 per month\n- Late payment penalty is 5% of the tax due\n- Interest on unpaid tax is 1% of the principal tax due."
}
] |
[
{
"from": "human",
"value": "How do I register for a PIN?"
},
{
"from": "gpt",
"value": "PIN registration for both companies and partnerships is initiated online via iTax.\nFollow these easy steps;\n1. Visit iTax\n2. Select `New PIN Registration`.\n3. Fill the online form appropriately.\n4. Upload relevant documents (business registration certificate details, PINs of the company directors and the National IDs)\n5. Submit online application\nNOTE:\nYou will receive an acknowledgment receipt on completion of the online application."
}
] |
[
{
"from": "human",
"value": "What is the difference between a sole proprietor and a limited company?"
},
{
"from": "gpt",
"value": "For a sole proprietor, you are liable for any losses or lawsuits that can be brought against your business. You are also responsible for all the debts of the business. A limited company is a separate legal entity from its owners. This means that the company is responsible for its own debts and lawsuits. The owners are not personally liable for the debts of the company. The company can also continue to exist even if the owners die or leave the company."
}
] |
[
{
"from": "human",
"value": "What is eTims?"
},
{
"from": "gpt",
"value": "eTIMS (electronic Tax Invoice Management System) is a software solution that provides taxpayers with options for a simple, convenient and flexible approach to electronic invoicing.\nTaxpayers can access eTIMS on various computing devices, including computers, laptops, tablets, smartphones, and Personal Digital Assistants (PDAs)."
}
] |
[
{
"from": "human",
"value": "Who should use eTims?"
},
{
"from": "gpt",
"value": "Every person carrying out business in Kenya is required to on-board eTIMS to issue electronic tax invoices and transmit the invoices to KRA through the system. Persons in business include:\na.Companies, partnerships, sole proprietorships, associations, trusts etc.\nb.Persons with income tax obligations including:\n\t-Monthly Rental Income (MRI) Tax\n\t-Turnover Over Tax (TOT)\n\t-Annual Income Tax – for Corporations, Partnerships and Individuals, both resident and non-residents with a permanent establishment.\nc.Persons conducting business in various sectors, including the informal sector.\n d.Persons in business whether or not registered for VAT. Persons in business but not required to register for VAT e.g. persons supplying VAT exempt goods and services such as hospitals supplying medical services, schools supplying education services, tours and travel agents, NGO's in business etc are also required to on-board on eTIMS.\nNote: VAT registered persons who did not adopt the TIMS ETR device will be required to onboard onto eTIMS."
}
] |
[
{
"from": "human",
"value": "Why is it not just for VAT registered taxpayers?"
},
{
"from": "gpt",
"value": "The law requires that for any person to claim their business expense, the expense must be supported by an electronic tax invoice. Therefore, all persons engaged in business are required to issue electronic tax invoices, whether registered for VAT or not (non-VAT taxpayers). "
}
] |
[
{
"from": "human",
"value": "Why eTIMS?"
},
{
"from": "gpt",
"value": "1. It aids in reducing compliance costs as the solutions are provided free of charge;\n2. eTIMS offers flexibility in the solutions available and is accessible on various computing devices;\n3. The stock management module assists taxpayers maintain their own inventory;\n4. eTIMS allows taxpayers to a maintain record of invoices issued on the taxpayer portal;\n5. eTIMS facilitates simplified return filing for taxpayers."
}
] |
[
{
"from": "human",
"value": "If I already have the TIMS ETR device, do I still need to onboard eTIMS?"
},
{
"from": "gpt",
"value": "VAT registered taxpayers who adopted the TIMS ETR may continue to use the devices for purposes of invoicing and transmitting tax invoices to KRA.\n However, anyone facing technical challenges using TIMS ETR devices, is encouraged to migrate to eTIMS to allow business continuity. For such cases, the taxpayer will be required to retire/de-activate their ETR device by accessing the \"TIMS Menu\" in their iTax profile and clicking on the sub menu \"Retire Control Unit Device\" to initiate the process."
}
] |
[
{
"from": "human",
"value": "Why should a person or business onboard eTIMS?"
},
{
"from": "gpt",
"value": "i. The requirement to onboard eTIMS and issue eTIMS compliant invoices is anchored in law.\nii. With effect from 1st January 2024, any person making deductions for business expenditure such as purchases and other business costs for income tax purposes is required to support such expenditure with a valid electronic tax invoice.\niii. Failure to issue TIMS ETR or eTIMS compliant tax invoices to your customers will deny them the ability to claim the expense when filing their income tax returns for periods commencing 1st January 2024.\n NB: However, some valid business costs such as emoluments, imports, investment allowances, interest and air passenger ticketing have been excluded from the requirement of being supported by an eTIMS invoice."
}
] |
[
{
"from": "human",
"value": "How much does it cost to onboard eTIMS?"
},
{
"from": "gpt",
"value": "No.\nThe eTIMS software is offered free of charge by KRA, i.e. the online portal and eTIMS client software.\nHowever, businesses that are integrating their invoicing system directly to eTIMS may incur costs if they opt to partner with one of the approved 3rd party integrators, as opposed to self-integration"
}
] |
[
{
"from": "human",
"value": "How can I onboard onto eTims"
},
{
"from": "gpt",
"value": "Step 1: Go to the eTIMS Taxpayer Portal etims.kra.go.ke\nStep 2: Click on the Sign-Up button and input your PIN.\nStep 3: One Time Password (OTP) will be sent to your iTax registered mobile number.\nStep 4: Input the OTP sent to your registered mobile number on the sign up page and you will be prompted to create a password for your profile.\nStep 5: Log in to the eTIMS taxpayer portal using your User ID (KRA PIN) and the password created during sign up.\nStep 6: Click on the Service Request button and select your preferred eTIMS software solution listed under the “eTIMS Type” menu.\nStep 7: Upload the following documents:\n\tA copy of the National ID of:\n\ti. At least one of the directors for Companies\n\tii. At least one of the partners for Partnerships\n\tiii. The business owner for sole proprietorships\n\tiv. Duly filled Commitment form.\nStep 8: Submit your application. An authorized KRA officer will verify the application and approve as appropriate.\nStep 9: Install and configure the eTIMS software on the preferred device:\n\ti. For self-installation, one can access the ‘User Guides’ as found in the KRA website and ‘How to Videos’ on the KRA YouTube channel\n\tii. Taxpayers can also visit the nearest KRA office for assistance."
}
] |
[
{
"from": "human",
"value": "What should I do if I get an error message when I input my PIN during sign up?"
},
{
"from": "gpt",
"value": "If you input your PIN and get an error message, kindly email timsupport@kra.go.ke for assistance"
}
] |
[
{
"from": "human",
"value": "What should I do if I do not receive the One Time Password (OTP) during sign up?"
},
{
"from": "gpt",
"value": "1. Confirm that you have access to your iTax registered mobile number. If not, you will be required to update your mobile number through your iTax profile in order to complete the sign up process.\n2. Activate promotional messages on your mobile phone in order to receive the OTP."
}
] |
[
{
"from": "human",
"value": "How can I retrieve my lost password?"
},
{
"from": "gpt",
"value": "Reset your password on the eTIMS Portal by clicking on the link “Forgot password”."
}
] |
[
{
"from": "human",
"value": "Does eTims provide stock management?"
},
{
"from": "gpt",
"value": "Yes.\nIt is available for persons supplying goods. The eTIMS software supports stock management for both sales (outgoing stock) and purchases (incoming stock). The stock management modules are configured during installation of the software."
}
] |
[
{
"from": "human",
"value": "Can I use the same electronic device to install the eTIMS software for different companies?"
},
{
"from": "gpt",
"value": "No.\nThe eTIMS client software can only be installed on one device per taxpayer, for those selling goods.\nHowever, for taxpayers supplying services only, the online portal is accessible on any device since it is a web-based solution."
}
] |
[
{
"from": "human",
"value": "Is it possible to integrate my billing system with eTIMS?"
},
{
"from": "gpt",
"value": "Yes.\nIt is possible through a system to system integration. This integration is possible via the Virtual Sales Control Unit (VSCU) or Online Sales Control Unit (OSCU).\nKRA has appointed 3rd party integrators to facilitate the integration process for taxpayers.\nBelow is the list of approved 3rd party integrators:\n1. Advatech Office Supplies LTD (+254728333111)\n2. Stanbest Group (EA) Limited (+254715713475/ 86/88/ 93/ 97)\n3. Namiri Technology Limited (+254112685368)\n4. Interswitch East Africa (K) Limited (+254703053200)\n5. Deities Technologies Limited (+254701051689)"
}
] |
[
{
"from": "human",
"value": "How can one be certified as an eTIMS third-party integrator?"
},
{
"from": "gpt",
"value": "Information on how a person can be certified as a 3rd party integrator or as a self-integrator is available on the KRA website under the eTIMS menu."
}
] |
[
{
"from": "human",
"value": "Is it possible to re-install the eTIMS client software from one device to another?"
},
{
"from": "gpt",
"value": "Yes.\nIt is possible. However, you will be required to visit the nearest KRA office for assistance. The following will be required:\n\ni. In case the device was stolen, provide the Occurrence Book (OB) report from a police station confirming theft of the device.\n\nii. In case the device malfunctioned, provide a job card from a qualified technician confirming the malfunction.\n\niii. In any other case such as software upgrade or change of device, provide relevant supporting documents."
}
] |
[
{
"from": "human",
"value": "Does one require internet connectivity to invoice through eTIMS?"
},
{
"from": "gpt",
"value": "-For the online solutions, i.e. online portal and Online Sales Control Unit (OSCU), a stable internet connection is required to generate invoices.\n-For the other solutions i.e. eTIMS Client and VSCU, in case of internet downtime, the solutions will allow you to continue generating tax invoices. However, once your internet connection is restored and is stable, the generated invoices will be transmitted to KRA."
}
] |
[
{
"from": "human",
"value": "How can one verify whether an electronic tax invoice is valid?"
},
{
"from": "gpt",
"value": "1. Scan the QR code.\n2. Input the invoice number on the `Invoice number checker` menu on the iTax portal"
}
] |
[
{
"from": "human",
"value": "Can I appoint a representative to onboard me on eTIMS?"
},
{
"from": "gpt",
"value": "Yes.\nYou can appoint a suitable representative to sign up and install the eTIMS solution on your behalf.\nThe following is required:\n\ti. An introductory letter, signed by at least one of the directors or partner or business owner clearly indicating who has been appointed as the tax representative and their role in the business. Include your contact information, in case a KRA official will need to contact you.\n\tii. The director(s) or partner(s) or owner of the business should fill in and sign the eTIMS Acknowledgement & Commitment Form\n\tiii. Copy of the director's/partner’s/owner’s national ID.\n\tiv. Copy of CR12 form for companies or Partnership Deed for Partnerships.\nThe above documents should be uploaded by the representative on the eTIMS portal."
}
] |
[
{
"from": "human",
"value": "Where can I get more information about eTIMS?"
},
{
"from": "gpt",
"value": "You can ask me any question about eTims and I will be able to answer you. What do you want to know?\nAlternatively, You can either:\n\ti. Visit the KRA website and access the eTIMS menu\n\tii. Send a Direct Message (DM) via Facebook or Twitter using the official KRA pages.\n\tiii. Visit the nearest KRA office"
}
] |
[
{
"from": "human",
"value": "What are the Solutions available on eTIMS?"
},
{
"from": "gpt",
"value": "The solutions available include:\n1. eTIMS Lite (Web) - Web based solution accessible through eCitizen. This solution is for businesses with minimal transactions.\n2. eTIMS Lite (USSD) - Accessed through the short code *222#. This solution is for individuals and sole proprietors.\n3. Online Portal- Tailored for taxpayers in the service sector exclusively, where no goods are supplied.\n4. eTIMS Client – A downloadable software designed for taxpayers dealing in goods or both goods and services. The software supports multiple branches and pay points/cashier tills.\n5. Virtual Sales Control Unit (VSCU) – This solution enables seamless system-to-system integration between the taxpayer’s invoicing/ERP system and eTIMS, catering to taxpayers with extensive transactions or bulk invoicing.\n6. Online Sales Control Unit (OSCU) – This solution also facilitates system-to-system integration between the taxpayer’s invoicing/ERP system and eTIMS. It is ideal for taxpayers using an online invoicing system."
}
] |
[
{
"from": "human",
"value": "How can I contact eTims?"
},
{
"from": "gpt",
"value": "You can contact eTims through the following channels:\nEmail: timsupport@kra.go.ke\nPhone Numbers:\n1. 0709 016 995\n2. 0709 017 719\n3. 0709 017 731\n4. 0709 017 718\n5. 0709 017 724\n6. 0709 017 735"
}
] |
[
{
"from": "human",
"value": "How to generate invoices using eTims?"
},
{
"from": "gpt",
"value": "Step 1: After successfully initializing your eCitizen eTIMS account click on Sales to raise an invoice\nStep 2: Click Invoice\nStep 3: Start by selecting whether it’s a Business to Business or Business to Customer transaction. Thereafter you can upload your logo (optional).\nStep 4: Create a customer or select the customer if they already exist. To create a customer simply click the Add New button.\nStep 5: If it is a valid KRA PIN the details of the customer will appear. Click on Add to add the customer to your list of customers\nStep 6: Once the customer is added to the list, select the customer you are invoicing. The details of the customer will appear automatically.\nStep 7: Confirm that the tax type is D (Non-VAT). You can add a note (optional) and also input the Due date\nStep 8: Click on the Add Item button to add an item\nStep 9: Input the item details i.e. the product/service, description, unit cost and quantity then click Add\nStep 10: A summary of the items will be displayed as follows to confirm if the details are in order\nStep 11: You can include any terms and conditions that you would like your customer to see and know and finally select the payment method\nStep 12: Once you have confirmed that all the invoice details are in order, scroll back up and save your invoice. NB: You can either save and download the invoice using the Save button or save and send the invoice to your client via email using the Save And Send button."
}
] |
[
{
"from": "human",
"value": "How can I change the current email address from the one I registered with in iTax?"
},
{
"from": "gpt",
"value": "Change of email address can be initiated by the taxpayer. On the taxpayers profile under registration, the taxpayer is allowed to amend PIN details.\nOnce the process is initiated by the taxpayer, a task is created for approval by a KRA officer."
}
] |
[
{
"from": "human",
"value": "In case I forget my password what can I do?"
},
{
"from": "gpt",
"value": "Go to the iTax log in page and select forgotten password. You will be asked for the security question you used when registering for the first time. Once you submit the information successfully, new log in credentials will be sent to your registered email address."
}
] |
[
{
"from": "human",
"value": "How can I change my password if I have forgotten my security question?"
},
{
"from": "gpt",
"value": "The taxpayer is required to send this PIN to KRA for password and security question reset through:\nEmail Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office."
}
] |
[
{
"from": "human",
"value": "What do I do if my Pin is locked?"
},
{
"from": "gpt",
"value": "All blocked password are reset automatically within 24 hours.\nAlternatively the taxpayer is can send this PIN to KRA to be unlocked reset through:\nEmail Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office."
}
] |
[
{
"from": "human",
"value": "At what age does one obtain a KRA PIN?"
},
{
"from": "gpt",
"value": "A PIN is issued upon acquisition of valid identification documents (e.g ID card)"
}
] |
[
{
"from": "human",
"value": "What is the requirement for one to obtain a KRA PIN?"
},
{
"from": "gpt",
"value": "Valid identification documents (National ID card for residents, Alien ID for non-Kenyan residents, Certificates of registrations for non-individuals)"
}
] |
[
{
"from": "human",
"value": "What should I do if I forget my password?"
},
{
"from": "gpt",
"value": "Go to the iTax log in page and click on forgot password link, answer the security stamp arithmetic and new log in credentials will be sent to your registered email address."
}
] |
[
{
"from": "human",
"value": "How can I change the current email and physical address information on iTax?"
},
{
"from": "gpt",
"value": "Change of email address can be initiated form the iTax profile, under Registration- Amend PIN details. Once the process is initiated by the taxpayer, a task is created for approval by a KRA officer."
}
] |
[
{
"from": "human",
"value": "How can limited partnerships whose partners are non individuals register for PINs on iTax?"
},
{
"from": "gpt",
"value": "Select Business Type as Others and Business Sub Type as Partnerships. Capture the partners PIN under the Directors/Associates. Enter the profit sharing ratio and click on the ADD button, and proceed to add the second PIN.\nNOTE: At the moment, this is only workable for new registrations but not iPage update."
}
] |
[
{
"from": "human",
"value": "My PIN has been stopped on iTax. What should I do?"
},
{
"from": "gpt",
"value": "Kindly contact your tax station for clarification on this."
}
] |
[
{
"from": "human",
"value": "My name has been wrongly spelled in iTax"
},
{
"from": "gpt",
"value": "The taxpayer is required to send his PIN together with scan colored copies of his original ID card or certificate of incorporation for data correction through the email callcentre@kra.go.ke"
}
] |
[
{
"from": "human",
"value": "I am a Non- Kenyan Non- Resident whose name was captured wrongly on iTax. Is there a way to correct this?"
},
{
"from": "gpt",
"value": "We currently do not have an amendment function for names for those PINs linked to passports."
}
] |
[
{
"from": "human",
"value": "What do I do after registering and can see only two icons (change password and logout)?"
},
{
"from": "gpt",
"value": "Normally a taxpayers profile will be fully populated will all icons within 24 hours upon registration. However a taxpayer intending to transact immediately can send this PIN to KRA through: email Callcentre@kra.go.ke\nOr;\nCall 0711099999\nOr;\nSend a Direct Message (DM) via Facebook or Twitter using the offical KRA pages.\nOr;\nVisit the nearest KRA office"
}
] |
[
{
"from": "human",
"value": "What to do when the system prompts you to at least have one of the tax obligations."
},
{
"from": "gpt",
"value": "This happens especially in the case of an individual registration.\nJust send this PIN to KRA through:\nemail Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke\nOr;\ncall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office and request for the obligation."
}
] |
[
{
"from": "human",
"value": "Who should update iPage?"
},
{
"from": "gpt",
"value": "All taxpayers (individuals, companies, parastatals, NGOs, etc) should update their information using the iPage.\nWhen logging for the first time, the initial requirement will be updating iPage."
}
] |
[
{
"from": "human",
"value": "Why should I update my iPage?"
},
{
"from": "gpt",
"value": "iTax provides for capture of additional registration data not previously captured. The information required in iTax includes among others your county, employer, cell phone contact, unique email address, tax agent, etc."
}
] |
[
{
"from": "human",
"value": "When should I update my iPage?"
},
{
"from": "gpt",
"value": "Taxpayers are required to update their iPage on first log in to iTax."
}
] |
[
{
"from": "human",
"value": "Where can I update my iPage?"
},
{
"from": "gpt",
"value": "Go to https://itax.kra.go.ke\nOr;\nVisit the KRA website www.kra.go.ke. Click on Online services and select PIN Registration to access the iTax portal."
}
] |
[
{
"from": "human",
"value": "How do I update my iPage?"
},
{
"from": "gpt",
"value": "One is required to fill in the mandatory fields especially under basic information then submit the data so as to update the taxpayers information with KRA."
}
] |
[
{
"from": "human",
"value": "What do I do if my PIN is not recognized when I try to update my iPage?"
},
{
"from": "gpt",
"value": "This happens for new PINs that have not been migrated to iTax. The taxpayer is required to send this PIN to KRA for migration through;\nEmail Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office."
}
] |
[
{
"from": "human",
"value": "Do I need a VAT certificate if I have a PIN certificate?"
},
{
"from": "gpt",
"value": "No. PIN certificate is sufficient.\nWhat the taxpayer needs to do if they start dealing in vat-able business is to add VAT obligation on the PIN."
}
] |
[
{
"from": "human",
"value": "What happens when we try to update iPage and the data is not consistent with the database?"
},
{
"from": "gpt",
"value": "The taxpayer is required to send this PIN to KRA for data correction through;\nEmail Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office."
}
] |
[
{
"from": "human",
"value": "I am trying to register but I keep getting error ref. no. 139.....what do I do?"
},
{
"from": "gpt",
"value": "This happens when there is poor internet connectivity.\nSorry, but be patient and keep trying."
}
] |
[
{
"from": "human",
"value": "What do I do if I have Error in date of birth or certificate of incorporation?"
},
{
"from": "gpt",
"value": "The taxpayer is required to send this PIN to KRA for data correction through:\nEmail Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office."
}
] |
[
{
"from": "human",
"value": "What do I do if Income tax date comes before business commencement date?"
},
{
"from": "gpt",
"value": "The taxpayer is required to send this PIN to KRA for data correction through:\nEmail Callcentre@kra.go.ke and DTDOnlineSupport@kra.go.ke\nOr;\nCall 020 2390919 and 020 2391099 and 0771628105\nOr;\nVisit the nearest KRA office."
}
] |
[
{
"from": "human",
"value": "What is iTax?"
},
{
"from": "gpt",
"value": "iTax is a system that has been developed by KRA to improve on efficiency.\niTax allows you to register for a PIN, file your tax returns, apply for a tax compliance certificate, generate a payment slip, check your ledger account among others."
}
] |
[
{
"from": "human",
"value": "How does iTax work?"
},
{
"from": "gpt",
"value": "iTax allows one to update their tax registration details, file tax returns, register all tax payments and make status enquiries with real-time monitoring of their ledger/account."
}
] |
[
{
"from": "human",
"value": "How do I access iTax?"
},
{
"from": "gpt",
"value": "To log on to iTax, visit itax.kra.go.ke and follow the prompts."
}
] |
[
{
"from": "human",
"value": "I am trying access the portal but I keep getting error ref. no. 148..... What do I do?"
},
{
"from": "gpt",
"value": "This happens when there is network fluctuation. Please be patient and keep trying."
}
] |
[
{
"from": "human",
"value": "Does KRA offer training on iTax?"
},
{
"from": "gpt",
"value": "Yes. Training is done free of charge every first two Thursdays of the month at the Convention Centre, 5th floor Times Tower."
}
] |
[
{
"from": "human",
"value": "Can I file all returns on iTax?"
},
{
"from": "gpt",
"value": "Yes you can.\nFirst, you need to login into the system then go to the returns tab and select file return and download the return.\nYou need to fill the return offline before you generate a zipped file that you will upload."
}
] |
[
{
"from": "human",
"value": "How do I treat Credits from a previous VAT return?"
},
{
"from": "gpt",
"value": "On the VAT return at the Tax Due worksheet, you can be able to put the figure at from the previous months credit."
}
] |
[
{
"from": "human",
"value": "If I dont have PINs for my suppliers what should I do?"
},
{
"from": "gpt",
"value": "Invoice without PIN is not valid tax invoice & therefore not allowed for tax deduction."
}
] |
[
{
"from": "human",
"value": "How do I treat Credit notes in iTax?"
},
{
"from": "gpt",
"value": "iTax has provided for inclusion of the credit notes in the return. While filling the returns one needs to input a negative figure but quote the invoice relating to the credit note."
}
] |
[
{
"from": "human",
"value": "Can I correct an error once I file a return?"
},
{
"from": "gpt",
"value": "Yes.\nYou can do this by filing an amended return."
}
] |
[
{
"from": "human",
"value": "I have heard that before one can complete the Excel Return one is required to enable MACROS on the excel sheet. What is enabling MACROS and how does one do this?"
},
{
"from": "gpt",
"value": "MACROS are inbuilt formulae in Excel that should be enabled once you download the return so that you can be able to fill in the details of the return.\nEnabling MACROS is on the read me section of the return and it gives you a step by step guide depending on the Excel version you have."
}
] |
[
{
"from": "human",
"value": "My business system produces a lot of data. With the Excel returns I will be required to fill every cell to input my data. This is cumbersome and time consuming. What will you do to facilitate and eliminate this inconvenience?"
},
{
"from": "gpt",
"value": "You can be able to do the returns in Excel and import the information to the return. You need to save this information in CSV (Comma delimited) for further information please contact KRA certified Intermediary agents, or call 020 2390919 and 020 2391099 and 0771628105."
}
] |
[
{
"from": "human",
"value": "I have a PIN but have not traded. Do I have to file returns?"
},
{
"from": "gpt",
"value": "Yes you need to file a NIL return.\nAll you need to do is go to your iTax profile, Returns, and select the NIL return option and submit."
}
] |
[
{
"from": "human",
"value": "What do I do if I am trying to upload my return but system tells me I have to file returns for previous months/year?"
},
{
"from": "gpt",
"value": "In the case of first time filling you need to call KRA for the change of roll-out date. In the case that you had filled the first return on iTax and failed to file subsequent returns i.e. for one or three months, you need to file the missing returns in iTax before you can file the current one."
}
] |
[
{
"from": "human",
"value": "What do I do if I am trying to file VAT/PAYE return on iTax but system tells me I am not registered for that return?"
},
{
"from": "gpt",
"value": "You need to update your tax obligation information in your iTax account to enable you to file."
}
] |
[
{
"from": "human",
"value": "Can I view a copy of the previous returns that I have filed for previous tax periods?"
},
{
"from": "gpt",
"value": "Yes. You login to your account, select the returns tab then consult return. You need to select the type of return and the period."
}
] |
[
{
"from": "human",
"value": "What is a return of income?"
},
{
"from": "gpt",
"value": "Declarations of all the incomes of a person in the given year of income."
}
] |
[
{
"from": "human",
"value": "Are the returns available on iTax?"
},
{
"from": "gpt",
"value": "Yes"
}
] |
[
{
"from": "human",
"value": "What income is to be declared?"
},
{
"from": "gpt",
"value": "All taxable income"
}
] |
[
{
"from": "human",
"value": "If one does not have income and has a KRA PIN are you required to file a return?"
},
{
"from": "gpt",
"value": "Yes, they are to file NIL returns for the period without income."
}
] |
[
{
"from": "human",
"value": "Who is required to submit a KRA tax return?"
},
{
"from": "gpt",
"value": "Any individual who has an active PIN as per the requirements of the registered obligations under the PIN."
}
] |
[
{
"from": "human",
"value": "Why does the commissioner not consider removing the requirement of filling of income tax individual returns by employees who have no other source of income?"
},
{
"from": "gpt",
"value": "The income tax individual return is a requirement under section 52 of the income tax act."
}
] |
[
{
"from": "human",
"value": "Why does KRA require taxpayers to file income tax individual returns yet the employers had filed the paye retuns?"
},
{
"from": "gpt",
"value": "The employer files PAYE returns to declare taxes deducted from their employees. The employee files The returns to declare their total incomes ie(farming income, business income, employment income, interest, commissions among others)"
}
] |
[
{
"from": "human",
"value": "What is a P9?"
},
{
"from": "gpt",
"value": "A summary of The employment income received in The given year,its issued by The employer to employees"
}
] |
[
{
"from": "human",
"value": "I am unable to edit the details on my ITR return."
},
{
"from": "gpt",
"value": "Editing of fields for the Income Tax Return, ITR for employment income only has been disabled. If a taxpayer who opts to use this auto populated return notices a discrepancy, they should proceed to file the return using the excel IT1 return."
}
] |
[
{
"from": "human",
"value": "Under what circumstances would it be mandatory for me to file the excel IT1 return?"
},
{
"from": "gpt",
"value": "If your employer is not remitting PAYE through iTax like the MDAs(Ministry, Departments and Agencies of government) especially those using IFMIS then the PAYE credits will not be posted to your ledger and hence you should file the IT1 returns using the excel form.\nIf you have a WHT certificate or any other income apart from employment."
}
] |
[
{
"from": "human",
"value": "I am not able to reprint my income tax withholding certificates."
},
{
"from": "gpt",
"value": "Retrieve the WHT certificate details from the certificates tab. Reprint WHT certificate- Consult"
}
] |
[
{
"from": "human",
"value": "What should a person living with disability indicate as the Certificate Date when filing the IT1 Return?"
},
{
"from": "gpt",
"value": "The date to indicate is dependent on various scenarios.\nIf the exemption certificate was renewed before the period you are filing the IT1 return, use the exemption certificate dates as from 01/01/year to 31/12/year.\nIf the exemption certificate was renewed within the tax period of filing the return the IT1 return can be filed by declaring both the expired one and the renewed exemption certificate."
}
] |
[
{
"from": "human",
"value": "What happens to Previous Returns filed by person living with disability whereby the return could not accept Two, 2 Exemption Certificates?"
},
{
"from": "gpt",
"value": "Prior cases can now be amended on iTax to ensure that relief amounts are gotten for a full period as per the Income Tax Act."
}
] |
[
{
"from": "human",
"value": "What happens to Previous Returns filed by person living with disability whereby the return could not accept Two, 2 Exemption Certificates?"
},
{
"from": "gpt",
"value": "Prior cases can now be amended on iTax to ensure that relief amounts are gotten for a full period as per the Income Tax Act."
}
] |
[
{
"from": "human",
"value": "How do the new tax rates apply when filing PAYE returns?"
},
{
"from": "gpt",
"value": "Depending on the period declared in the basic information the return will apply the relevant rates and reliefs applicable for that period e.g. if you select return period as 01/01/2017 to 31/12/2017 then the return will use the new rates and reliefs as per the Finance Act 2016."
}
] |
[
{
"from": "human",
"value": "Can I correct an error once I file a return, amendments?"
},
{
"from": "gpt",
"value": "Yes. You can do this by filing an amended return."
}
] |
[
{
"from": "human",
"value": "How does one enable MACROS on the Excel Return?"
},
{
"from": "gpt",
"value": "MACROS are inbuilt formulae in Excel that should be enabled once you download the return so that you can be able to fill in the details of the return. Enable MACROS under File - Options- Trust Center- Trust Center Settings- Macro Settings- Check to enable all macros- Check trust access to the VBA project model."
}
] |
[
{
"from": "human",
"value": "Can I view a copy of the previous returns that I have filed?"
},
{
"from": "gpt",
"value": "Yes. Log on to your account, select returns then consult return. You need to indicate the type of return and the period."
}
] |
[
{
"from": "human",
"value": "What Corporation Tax incentives do newly listed companies enjoy?"
},
{
"from": "gpt",
"value": "Currently the Income Tax Act does not offer a preferential tax regime for newly listed companies. These provisions were deleted effective 25th April, 2020 by The Tax Laws (Amendment) Act, 2020."
}
] |
[
{
"from": "human",
"value": "Are EPZ exempt from Corporation Tax?"
},
{
"from": "gpt",
"value": "Yes.\nAn Export Processing Zone (EPZ) enterprise which does not engage in any commercial activities is exempted from paying any corporation tax for a period of 10 years starting with the year in which production, sales or receipts relating to the activities for which that enterprise has been licensed as an EPZ enterprise commence.\n After the 10th year, the corporation rate of tax will be 25% for the period of 10 years commencing immediately thereafter.\n“Commercial activities” referred to above, include trading in, breaking bulk, grading, repacking, or relabelling of goods and industrial raw materials\nThough exempt from corporation tax, there following are tax obligations that the EPZ enterprise would be liable for during the period in which it is exempt from corporation tax:\n\ti. The enterprise shall be deemed to be a non-resident subject to a non-resident rate of withholding tax on payments made to the enterprise. Where such payments are made by a person who is not an EPZ enterprise, the tax shall be final tax; and\n\tii. Payments by an export processing zone enterprise to any person other than a resident person shall be deemed to be exempted from tax.\n\tiii. The employees and directors, other than non-residents, of an export processing zone enterprise shall be liable to tax on their employment income and the EPZ enterprise employing them will be required to deduct and remit tax from their employment income.\nIt is important to note that for the period an EPZ enterprise is exempt, it will still be required to submit an annual return of income.\nIn the event of failure to submit a return or late submission of a return, the enterprise will be liable to a penalty of two thousand shillings per day for as long as the return remains unfiled. This penalty shall for purposes of provisions relating to the deduction and recovery of the tax be deemed to be tax."
}
] |
[
{
"from": "human",
"value": "Do Partnerships pay Corporation Tax?"
},
{
"from": "gpt",
"value": "No.\nPartnerships do not pay corporation tax. Partnership income is declared through the partnership return.\nThe table income is distributed to the individual partners as per the agreed profit sharing ratios.\nThe share of profit then forms part of each individual's partner’s income. It will be added to any other income and the total income taxed accordingly."
}
] |
[
{
"from": "human",
"value": "Do self-employed people pay Corporation Tax?"
},
{
"from": "gpt",
"value": "No.\nSelf-employed people and Sole proprietorships are not subject to corporation tax.\nThey are required to declare their total income of the year in the Individual Income Tax Return and pay Income Tax."
}
] |
[
{
"from": "human",
"value": "Can I claim my company expenses?"
},
{
"from": "gpt",
"value": "When filing your Corporation Tax Return (also referred to as Income Tax - Company Return) you are only allowed to claim expenses that have been wholly and exclusively incurred in the production of your income as guided in section 15 and 16 of the Income Tax Act, Cap. 470."
}
] |
[
{
"from": "human",
"value": "What if I had incurred losses?"
},
{
"from": "gpt",
"value": "A company is allowed to carry forward its losses that will be offset against future taxable income.\nHowever, losses cannot be transferred to a different entity.\nCompanies in the extractive industry e.g. mining, oil and gas industries, are only allowed to carry their losses forward for a period of three years, from the year of income in which the loss arose."
}
] |
[
{
"from": "human",
"value": "What if I had incurred losses?"
},
{
"from": "gpt",
"value": "A company is allowed to carry forward its losses that will be offset against future taxable income.\nHowever, losses cannot be transferred to a different entity.\nCompanies in the extractive industry e.g. mining, oil and gas industries, are only allowed to carry their losses forward for a period of three years, from the year of income in which the loss arose."
}
] |