In a significant move to modernize tax administration, the Kenyan government has set a deadline for non-registered taxpayers to become eTIMS compliant by March 31, 2024. The eTax and Integrated Management System (eTIMS) is an initiative by the Kenya Revenue Authority (KRA) aimed at enhancing efficiency, transparency, and accountability in tax collection. This article delves into the key aspects of this mandate and its implications for non-registered taxpayers in Kenya.

Understanding eTIMS

The eTax and Integrated Management System (eTIMS) is an advanced digital platform designed to streamline tax processes and provide a centralized system for tax administration in Kenya. It incorporates various tax modules, offering taxpayers a unified interface for filing returns, making payments, and accessing relevant information. The implementation of eTIMS aligns with global trends in leveraging technology for effective and transparent tax management.

Deadline for Compliance

The KRA has mandated that non-registered taxpayers in Kenya must become eTIMS compliant by March 31, 2024. This deadline is part of the government’s broader efforts to enhance revenue collection, reduce tax evasion, and promote a more efficient and accountable tax system. Non-compliance with this directive may result in penalties and other legal consequences.

Importance of Compliance

The move towards eTIMS compliance is crucial for non-registered taxpayers as it brings several benefits. Firstly, the digital platform simplifies the tax filing process, reducing the time and effort required for compliance. Additionally, eTIMS enhances accuracy in tax reporting, minimizing errors that could lead to misunderstandings between taxpayers and the tax authorities.

Furthermore, eTIMS promotes transparency by providing a real-time overview of tax transactions and liabilities. This transparency not only benefits taxpayers in understanding their obligations but also aids the government in tracking and managing tax revenue more effectively.

Process of eTIMS Compliance

Non-registered taxpayers who are yet to embrace eTIMS compliance can follow a streamlined process to ensure adherence to the March 31, 2024, deadline. The KRA website (https://www.kra.go.ke/) serves as the primary portal for accessing eTIMS and initiating the compliance process.

1. Registration: Non-registered taxpayers must start by registering on the KRA website. This involves providing accurate and up-to-date information, including personal details and business information if applicable.
2. Profile Creation: Once registered, taxpayers can create a profile on the eTIMS platform. This profile serves as the central hub for managing all tax-related activities.
3. Filing Returns: eTIMS enables taxpayers to file their returns electronically. The platform guides users through the process, ensuring that all required information is captured accurately.
4. Payment: The integrated payment system allows taxpayers to make their tax payments securely through various channels, such as mobile money, bank transfers, or other electronic payment methods.
5. Accessing Information: eTIMS provides a dashboard that allows taxpayers to access their transaction history, outstanding liabilities, and other relevant information. This feature empowers taxpayers with real-time insights into their tax status.

The eTIMS compliance mandate for non-registered taxpayers in Kenya represents a significant step towards a more efficient and transparent tax administration system. The March 31, 2024, deadline underscores the urgency for taxpayers to embrace digital transformation and align with the government’s vision for a modernized tax ecosystem.

As the deadline approaches, non-registered taxpayers are encouraged to proactively initiate the eTIMS compliance process through the KRA website. By doing so, they not only avoid potential penalties but also contribute to the broader goals of enhancing revenue collection and fostering a culture of accountability in Kenya’s tax landscape. The move towards digital tax management is a positive stride that positions Kenya as a forward-thinking player in the global taxation arena.