You may have been requested at one point to provide a tax compliance certificate from Kenya Revenue Authority by an employer or for a business tendering, but what is it and under what conditions will the revenue authority issue it or reject it?
What is a Tax Compliance Certificate?
A tax compliance certificate or a clearance is a document issued by KRA to show that a taxpayer has filled all his/her tax returns and paid taxes.
Why you need a Tax Compliance Certificate
It is essential always to keep a valid tax compliance certificate
You should always have valid tax compliance;
- Your employer may require it
- You may be asked for tax compliance when engaging in a business transaction
- For tender, it’s one of the required documents
- For the processing of some travel documents -passport.
You must, therefore, ensure you have a tax compliance certificate; usually, we want to rush at the last minute when we are asked to present it, but I always advise people always to have it even when it is not required. Even for business such as partnerships and companies that have a KRA PIN should also always have a valid Tax Compliance Certificate.
Conditions under which KRA will only issue a Tax Compliance Certificate
KRA will only issue an individual with a tax compliance certificate on condition that;
- The taxpayer has filed all tax returns
- Principal tax where applicable been paid
- Any outstanding debt is cleared
- Any outstanding interest has been cleared
For a business that is seeking to be issued Tax Compliance Certificate it:
- Must have filed their respective taxes
- Must have cleared any debt and interest
- The directors or partners must also be Tax Compliant
The validity of the Tax Compliance Certificate
A tax compliance certificate is only valid for a period of one year after it is issued after which one is required to apply for a new Tax Compliance Certificate.
How to Apply for a Tax Compliance Certificate
To apply for the certificate, you have to log in to your itax account online and apply for the Tax Compliance certificate.
Once you apply, you will get a download acknowledgement document with a reference number which you can use to follow on your TCC application.
Usually, Tax Compliance is issued within a period of 5 days according to KRA service charter; however, it may be issued before.
It’s always important to follow up on your application at your Tax Station for faster processing of your application.
If you have challenges in applying for tax compliance you can contact us for the service. We will help you make the application and have it issued in good time.
Wrap up
A tax compliance certificate is a document or clearance from Kenya Revenue showing that a taxpayer is tax compliant and has filed and paid all his/ her taxes.
It is usually applied from one’s itax account and approved at KRA tax station. Once approved you get a valid TCC for a period of one year. We offer the service for application of Tax Compliance Certificate, in case you have a problem applying it or you are asked for one contact us we will apply for you and follow up for faster issuance
