The Kenya Revenue Authority (KRA) has issued guidelines for those businesses applying for a Tax Compliance Certificate (TCC). This certificate is mandatory for businesses wishing to conduct transactions with government agencies and public bodies.
A TCC, which is normally valid for six months, after which a renewal can be requested, is issued to taxpayers who are compliant with their tax obligations under Kenya’s tax code. These obligations are the filing of tax returns for registered tax obligations, the payment of assessed taxes, and the declaration of the correct income. The issuance of a TCC will not however rule out an audit being carried out and any taxes found to be due will be payable.
To be eligible for a TCC, the applicant must ensure that all returns are submitted and all outstanding tax liabilities are settled. The same condition applies to directors or partners in case where the applicant is a limited liability company or partnership.
The KRA has introduced an online facility so that PINs and TCCs can be verified. The facility will enable taxpayers and the public to verify taxpayers’ authenticity. This facility has been introduced by the KRA following numerous complaints of fake PINs and TCCs in circulation.
Government agencies and business entities are the major beneficiaries of this facility due to the large numbers of tenders they handle. The agencies and business entities will be able to verify if the PIN and TCC forwarded to them by those bidding for services and goods are genuine and valid.
