KRA starts online tax returns system

Filing your tax returns will be much faster and easier this year, after Kenya Revenue Authority (KRA) launched the service on its web site.

The new service includes registration by taxpayers, filing of tax returns, payment of taxes and lodging of enquiries.

Payments will be made via commercial banks, including the National Bank of Kenya and Kenya Commercial Bank, among others.

With the new service, KRA expects to reduce tax evasion at ports of entry that takes place when traders declare their goods to Customs officials.

KRA also hopes to reduce traffic to and queues in its offices, and to save time and money spent on tax transactions. The online feedback, KRA says will be useful in helping it improve its services.

Aim of system

"KRA should be able to verify claims from the port of entry of goods, how much VAT we are expected to collect and the profit made by businessmen," said KRA Commissioner General, Michael Waweru.

"One cannot import goods into the country and deny the existence of the (same) goods." He said the new service will offer online confirmation of payments or submitted returns.

Present at the launch of new services at KRA’s Times Tower offices in Nairobi yesterday were KRA Commissioner of Domestic Taxes, John Njiraine, and Mumo Matemu, the Commissioner of Support Services, as well as several representatives of the public and private sector.

Waweru noted that from February, the online services will extend to Withholding VAT, popularly known as VAT 32. "This will make it possible for taxpayers to file returns for Withholding VAT online," sad the KRA chief. "Electronic filling of exercise duty returns and PAYE (Pay as You Earn) will be made available form the beginning of April this year."

Waweru said KRA has also made progress in developing systems that will facilitate online filing of returns for other taxes.

He said KRA will have a fully backed e-filing process with e-payment, before the current financial year ends.