KRA Introduces Tougher Rules for Tax Compliance Certificate Applicants

Kenyans seeking a Tax Compliance Certificate (TCC) will now have to meet stricter conditions after the Kenya Revenue Authority (KRA) linked approval of the document to compliance with the electronic Tax Invoice Management System (eTIMS) and timely filing of tax returns.

In a notice issued on Friday, KRA announced major changes to the process of obtaining a TCC, tightening the requirements for both individuals and businesses applying for the crucial tax clearance document.

Under the new rules, all businesses and individuals earning income beyond employment must be fully registered and compliant on eTIMS—or its earlier version, TIMS—before they can qualify for a TCC.

This means businesses that have not yet joined the eTIMS platform will not be eligible for a compliance certificate until they meet all system requirements.

KRA further directed that all taxpayers must file their tax returns on time and ensure all outstanding tax liabilities are either fully paid or covered by an approved payment plan.

“The payment plan, once approved, enables the taxpayer to continue with the self-service process of TCC application,” KRA stated. The authority added that taxpayers with unapproved or defaulted payment arrangements will not be granted the certificate.

The authority also stressed that applicants must be fully compliant with Value Added Tax (VAT) regulations, including those listed under the VAT Special Table.

According to KRA, this measure is meant to ensure that businesses maintain compliance across all tax categories. However, tax experts warn that the new rules could complicate matters for VAT-registered businesses flagged for “missing trader” issues.

Under the revised framework, KRA will require full VAT compliance, meaning any business linked to fraudulent or non-remitting suppliers may be classified as non-compliant. Such firms could face delays or denial of their TCC applications until all discrepancies are resolved.

Despite the stricter requirements, the process of applying for the certificate remains the same. Applicants will still be required to submit their requests through the iTax platform and verify their certificates using the online certificate checker.