How To Obtain KRA Clearance Certificate (A Step By Step Guide)

Do you find it difficult in obtaining your KRA clearance certificate? If yes, then this informative article is for you.

A KRA clearance certificate Kenya has proved to be an essential document that one needs when either changing business openings, applying for government tenders or when seeking new employment.

The certificate is issued by the Kenya Revenue Authority (KRA) after an applicant requests it as evidence of their compliance with yearly remittances. In simple terms, a KRA certificate form is similar to a certificate of good conduct that is issued by the Directorate of Criminal Investigations (DCI) to show that an applicant has a clean criminal record.

Why Is A KRA Clearance Certificate Crucial?

Presently, all employers in Kenya request for tax compliance certificate (TCC) as they do not want to hire an individual with tax arrears. Similarly, no company or organization wants to transact with another that has pending tax debts with the revenue authority. Additionally, when applying for any government tenders preserved for youth, women, and persons with disabilities, one must have a Tax Compliance Certificate to get approval.

How To Apply For The KRA Clearance Certificate

In the past, before 2014, individuals looking to get the tax compliance certificate had first to fill an application form then submit it to a KRA office. The entire process of acquiring a KRA Clearance certificate was a tiresome one filled with several barriers. Firstly, accessing the application form was not as straightforward.

Secondly, the taxpayer would encounter a rigorous procedure when submitting the TCC application form at the tax station. As such, one needed to set aside a lot of time to follow up on the tax compliance document. Afterward, a compliance manager would either verify the compliance status of the taxpayer who would be awarded a certificate or be requested to clear off any outstanding tax arrears which are making him non-compliant.

Introduction of iTax System

The iTax platform was launched in 2014 and has transformed the entire process of applying for a KRA clearance certificate. Currently, taxpayers no longer have to waste much resources and time traveling long distances to a KRA office. Taxpayers now have the privilege of applying for a KRA clearance document anywhere and at any given time. They only require internet connectivity, and they can do this using any electronic gadget with the internet.

Requirements For KRA Clearance Certificate

Before you set to apply for a Tax compliance Certificate using the iTax platform, you need the following things first;

• A National identification card (ID)
• KRA PIN of all partners or directors
• KRA PIN for your company when applying as a limited company
• Certificate of Incorporation in case of a Limited Company or Business registration document for sole proprietors and partnerships.

Steps Of Applying For A KRA Clearance Certificate Online

Step 1: A taxpayer needs first to register their PIN to the iTax platform. When successfully, the system will email an acknowledgment of receipt and provide you with your KRA PIN number as well as login credentials to access your iTax account. In case a taxpayer had previously obtained their PIN before the iTax launch, they need to update their PIN before commencing the TCC application.

Step 2: Using the login credentials sent to you via email, log in to your iTax profile. Once logged in, click on the Tax Compliance tab found under the E-certificate option.

Step 3: iTax will prompt you to give the pit a reason for your KRA Clearance Certificate Application Form. For instance, if you need the document because you are applying for a government tender, state it there. Proceed with submitting your application.

Please remember to update your iTax profile with a functioning email address in case it varies from the one used when requesting the KRA PIN number. This ensures you receive all communications from iTax. TCC application takes a maximum of five working days dependent on the iTax platform. You can track your application using the serial number in the format KRA2018, sent via the acknowledgment receipt.

The taxman must confirm if you are compliant with no arrears and then sends the compliance certificate to your email. In case of any tax arrears, the taxman will decline to issue you with a TCC since your returns are not dully filled. In case, the process is unsuccessful, and you will receive an email detailing the reasons why the taxman declined your application.

The KRA Clearance Certificate is valid for one year, and you will have to renew it annually. At the moment, KRA wants to change the validity of the document from twelve months to six months so that one has to renew their TCC twice a year.

To conclude, A Tax Compliance Certificate is essential, and we have seen how easy it is to apply for one in this modern day. Please note, you do not have to wait until someone requests your TCC; therefore, go and apply for yours today.

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