It is due on or before the 20th day of the succeeding month in which the digital service was performed, invoice raised or payment made whichever comes earlier.

No. The supplier is however required to issue an invoice or receipt showing the value of the supply and the tax charged. The non-resident digital service suppliers are exempt from the provisions of the Electronic Tax Register.

Yes, supplies exempt under first schedule of the VAT act of 2013.

The scope for services that attract VAT on DMS have been well elaborated in the Regulations   https://www.kra.go.ke/images/publications/VAT-Digital-Marketplace-Supply-Regulations.pdf

Yes. You are required to file a nil return by 30th June every year if you did not earn any taxable income within the year.

You can file your income tax return using the ITR for Employment income only which is already pre-populated with your employment income details if your employer filed the PAYE returns through iTax. Otherwise, you should request for your p9 form from your employer.

You can correct by filing an amended return. Once you log in to itax, click on the returns tab and select “File amended return”

You declare by indicating that you have other sources of Income on the basic information page of the return excel. Some additional sheets will open up for you to capture the relevant details

There is a provision for capturing employment income and pension contribution for January to March and April to December 2020 when filing returns

You should enter both of the employers PINs by adding rows if you are filing using the excel option. If filing using the prepopulated ITR for

employment income only option the information is already captured in the system.

By selecting yes to the question in the basic information of the excel income tax return ‘Do you have a mortgage?’ and capturing the mortgage details in sheet J - computation of mortgage. You will require a mortgage statement for the year and PIN of the lender to fill this section.

Yes. Every individual with an active KRA PIN is required to file an income tax return.

The deadline for filing the Income Tax returns for individual taxpayers is 30th June every year.

 The penalty for late filing for individuals is 5% of the tax due or Ksh.2000 whichever is higher. The late payment penalty is 5% of the tax due and also  late payment attracts an interest of 1% per month.

This is a framework that provides a list of sectors identified as low risk. Claims by taxpayers from these sectors receive preferential treatment aimed at fast tracking processing of the refunds. The claims undergo minimal verification before payment but are SUBJECT to POST AUDIT to mitigate any risk.

We will offer you a preferential treatment in processing of refund claims by subjecting them to minimal verification during processing.  

The green channel will earn you an Improved reputation in the Authority

You will receive enhanced business cash flows predictability and planning, due to the efficient refund processing offered to the green channel claims.

Any taxpayer who meets the below qualifications can join the green channel;

• A regular taxpayer with a sound compliance history.
• A taxpayer with NO past experience in any fraud related issues.
• A taxpayer with NO history of exports diversion.
• A taxpayer who UPHOLDS high compliance levels to tax laws and regulations at ALL times.
• A taxpayer who demonstrates compliance with ALL KRA requirements.
• A taxpayer who MUST produce records /information as and when required.
• A taxpayer who is ready for ANY post audits as deemed vital to determine and monitor compliance
• A taxpayer WHO upholds all conditions of being in Green Channel and one who is committed to continuous improvements of the operations and standards of the green channel.

Through invitation by KRA after analysis of the compliance history or the taxpayer can request to be enrolled.

How long does the green channel enrolment process take?

 Upon approval by the commissioner and subsequent acceptance of the terms and conditions by the taxpayer

You can remain in the green channel as long as the framework exist. However, there is frequent vetting and verification of the green channel list to uphold compliance.

The taxpayer will be;

Disqualified  from the Green Channel list.

Subjected to in-depth audits for the periods paid under the green channel framework.

In case of fraud, you will charged according to the VAT Act 2013 and the TPA Act  of 2015.