Every Kenyan with a KRA PIN has an obligation to file their taxes each year whether you have earned an income throughout the year or not. This is mandatory under the law and failure to which attracts a penalty. After filing your taxes, you may choose to get a tax compliance certificate. It’s not a must but it’s necessary for certain applications and transactions.
A Tax Compliance Certificate (TTC) is a document issued by the KRA proving that you have paid your taxes and filed all the necessary returns. This proves that you are credible and you are financially responsible. A tax compliance certificate is issued when:
- Payment of tax is made on or before the due date
- Filing of tax returns is done on or before the due date
- Clearance of all outstanding tax debt is done
- Arrangement is made with the Commissioner for a payment plan of the taxes due
KRA can refuse to issue a tax compliance certificate based on certain factors. These include:
- Outstanding taxes – if you fail to pay your taxes, KRA will not issue a tax compliance certificate until the parlance is cleared or arrangements are made for the payment.
- Ongoing tax disputes – if you’re under audit or investigation by KRA for tax matters, you cannot get a TCC
- Inconsistent tax declarations – your tax declarations should match with the KRA records. If not, you will not get a tax compliance certificate
- Failure to file returns – if you have failed to file your returns or have filed late without rectifying the issue, your application for a TCC will not go through
- Failure to update PIN details or business information – when you make changes to your business, you must update the details in your KRA PIN. If they aren’t consistent with your current information, your TCC will be withheld
It’s important to ensure that you are compliant so you are eligible for the certificate. The Tax Compliance Certificate isn’t simply a piece of paper that shows you have filed your taxes. It is also required when making certain applications such as
- Job applications especially with the government
- Government tender application
- Clearing and forwarding license application
- Work permit renewal application
- Liquor store license application
Once you have verified that you qualify to get a Tax Compliance Certificate, you can begin the process.
Here’s how to make the application.
Requirements
- Active KRA PIN
- Certificate of Incorporation (for businesses)
- Updated tax return history
- Updated financial records
- Relevant tax obligations eg PAYE, NSSF, VAT etc
Process to apply for a tax compliance certificate
- Visit the itax website and log in to your account
- Go to the Certificates section and click on the menu then select Apply for Tax Compliance Certificate
- Fill the application form with your details including name, KRA PIN, address, business information, phone number and email address
- Select your reason for applying for a TCC then click Submit
- If there are pending issues, KRA will ask you to resolve them. The application will be reviewed manually by a KRA officer who may request for supporting documents. You can also contact KRA customer care, visit KRA offices or consult a tax expert for further assistance
- If there are no issues with your application, it will be approved immediately and the tax compliance certificate will be available for download
- You will receive an approval message that reads “Auto Approval for Tax Compliance Certificate has been submitted successfully” along with a download link
- If you choose to download later, go to the Certificates section and select Consult and Reprint TCC
Note: A Tax Compliance Certificate is valid for a year from the date of issue