KRA threatens penalties for businesses not registered on eTIMS

You will not be eligible for any tax refunds if you do not onboard your business or services onto the eTIMS platform.

This is Kenya Revenue Authority's (KRA) warning to business owners who are yet to get on to the eTIMS platform, with the March 31st deadline fast approaching.

According to the tax man, there are 728, 434 enterprises that are yet to comply with the directive out of the 915,000 enterprises targeted with only 5 days to the March 31 deadline.

"If you don’t onboard it makes it difficult for the businesses to do business with you," eTIMS Chief Manager Hakamba Wangwe said.

The failure of businesses to enroll on the platform which seeks to avail all transactional information to the tax man has seen the tax man fail to achieve the intended target of Ksh.60 billion in revenue mobilisation collecting only Ksh.25 billion.

At the same time KRA has recorded an increase in the number of new pin issuance through the drive.

"The 26,000 that are using the simplified solution what we've noted is they have had to formalise their business. This has been largely driven by the private sector we’ve had some of the retails outlets be very helpful in having tax payers onboard," said Wangwe.

eTIMS  is a software solution developed by kra for taxpayers to electronically invoice their customers and keep track of the transaction. the onboarding process for eTIMS began on September 1, 2023, targeting all taxpayers doing business, including those who are not registered for vat (non-vat taxpayers) but fall under the income tax bracket

If you do not onboard on eTIMS by the 31st March you risk facing a penalty double  the amount of taxes evaded.