The Kenya Revenue Authority (KRA) has released new rules for the 2025 tax filing season on April 3, 2026. Businesses must file returns and settle balances by April 30, 2026, facing penalties for delays. The updates cover business expenses, PAYE, and VAT procedures.
The Kenya Revenue Authority announced these changes on its website on April 3, 2026, ahead of the April 30, 2026, deadline for filing 2025 tax returns and settling balances.
Business owners can deduct legitimate expenses like rent, supplies, and staff costs from taxable income, even without eTIMS receipts. They must scan and upload original receipts or proofs to iTax, prepare an Excel schedule listing each with the supplier's KRA PIN, and then file. KRA verifies submissions for approval.
Employers file monthly PAYE returns on iTax for employees, including nil returns in inactive months. Employees should confirm employer compliance, as it impacts their tax records.
VAT-registered businesses benefit from auto-populated returns using eTIMS data, reducing manual entry and errors. For mixed taxable and exempt sales, input tax apportionment requires manual adjustment via invoice claims or form fields.
eTIMS-exempt businesses seeking a Tax Compliance Certificate must visit a KRA office in person. A full list of exemptions is on the KRA website.