The Kenya Revenue Authority (KRA) has called on businesses to declare their invoices through the electronic Tax Invoice Management System (eTIMS).
This initiative aims to facilitate accurate tax assessments while providing businesses with the necessary tools for efficient financial management.
Hakamba Wangwe, Chief Manager at the eTIMS office said the move will offer flexibility tailored solutions to suit the specific needs of users, making it an essential tool for businesses of all sizes in ensuring seamless tax compliance across various business sectors.
“We need all taxpayers to be part of this so that they can support each other when it comes to accounting for expenses when purchasing from each other in their income tax return when it comes to determining their tax reliability,” Wangwe said during an interview with Metropol TV on Tuesday.
With nearly 100,000 taxpayers already utilizing the platform, KRA aims to onboard a total of 950,000 taxpayers with business income, constituting 20 percent of their total taxpayer base.
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She hinted that eTIMS is not a tax but a tool designed to collect transactional data, enabling accurate tax calculations and filings.
“eTIMS is crucial for ensuring that taxpayers’ calculations are accurate and that they have paid the correct amount of tax,” Wangwe explained. “Moreover, by delinking eTIMS from income tax return filing, we can identify taxpayers who may be exempt from certain tax obligations based on their transaction volumes.”
eTIMS only captures transaction details found in invoices or receipts, safeguarding taxpayers’ confidential information in accordance with the Tax Procedures Act, 2015.
Wangwe further noted eTIMS flexibility in handling adjustments to invoices, allowing businesses to issue credit notes for revised values.
As the March 31 deadline approaches, KRA anticipates a surge in taxpayers joining the eTIMS platform. However, the onboarding process will continue beyond the deadline, encouraging more businesses to embrace this innovative solution for simplified tax compliance and efficient data management.
