Kenya Revenue Authority (KRA) has assured taxpayers and the general public that it will continue supporting them as the country faces a global health challenge. Both individuals and businesses will continue to access KRA services. The authority also promises to facilitate timely payment of taxes.
In line with the Presidential directive to mitigate the effects of COVID – 19 to the Kenyan economy. KRA has deferred the physical submission of documents and appearance before our teams. Taxpayers will be duly notified of when they can appear in person. In the interim, taxpayers are advised to submit evidence of transactions through the KRA call centre. Taxpayers can access tax services on KRA online platform.
KRA has implemented the reduction of Personal Income Tax top rate (PAYE) from 30 per cent to 25 per cent. 100 per cent Tax Relief for persons earning up to Ksh. 24,000. Other facilitations include the reduction of Resident Corporate Income Tax rate from 30 to 25 per cent and reduction of Turnover Tax rate for SMEs from 3 to 1 per cent. Including Immediate reduction of VAT rate from 16 to 14 per cent, lowering of Central Bank Rate (CBR) to 7.2 per cent and lowering of Cash Reserve Ration (CRR) to 4.2 per cent.
Following the announcement that Central Bank of Kenya will offer flexibility to banks on loans. Especially those that were active as of March 2020 to maintain liquidity levels. KRA will facilitate expedited payment of VAT Refunds by allocating an additional Ksh. 10B. And finally setting up a fund to which players in the Public and Private Sector are contributing in support of Government efforts.
KRA will decisively handle any matter that pertains to deliberate non-payment of taxes. In the event that a taxpayer is not able to honour the agreed payment plan.
“While taxpayers must provide proof of transaction for VAT inconsistency reports. We appreciate this is not tenable in the current environment”.
As the country faces this global health challenge. All citizens are called upon to play their constitutional role and pay all taxes. To support the Government in the provision of critical services.