The Kenya Revenue Authority (KRA) has introduced key updates to its iTax system to ease tax filing for businesses, particularly those that do not occasionally issue electronic tax invoices.
In a statement on Tuesday, May 19, KRA confirmed that the latest system enhancements were done over the weekend and are designed to improve how taxpayers declare and claim business expenses.
KRA noted that one of the biggest challenges facing businesses has been the requirement to use eTIMS-compliant invoices for all deductible expenses.
While eTIMS was introduced to enhance tax compliance, it has also created difficulties for businesses dealing with informal traders, such as farmers, matatu operators, vendors, and Jua Kali artisans, to capture legitimate claims.
To address this, KRA disclosed that it has strengthened the manual Non-eTIMS CSV upload feature within the iTax system.
This feature allows taxpayers to declare business expenses that do not have supporting eTIMS invoices.
Once uploaded, the expenses become immediately available for claiming, eliminating delays or the need for additional approval from KRA.
The system also includes automated validation tools that flag errors such as incorrect or invalid PIN entries, helping taxpayers correct mistakes before filing is completed.
Another notable update in the latest system improvement is the removal of the mandatory supplier PIN requirement for non-eTIMS expense declarations.
Previously, taxpayers were required to include a supplier’s KRA PIN for every expense entry, a requirement that proved impractical for transactions involving informal or unregistered suppliers.
Under the new update, the supplier PIN field is now optional with taxpayers now able to include it where available, but missing PINs will no longer prevent the declaration or claiming of valid business expenses.
The changes are expected to ease compliance pressure on businesses that deal in the informal sector while also ensuring that legitimate expenses are not excluded simply because suppliers operate outside the formal tax registration system.
KRA disclosed that the latest update is part of its ongoing efforts to refine iTax based on taxpayer feedback and real-world business challenges.