How to Apply for a Tax Compliance Certificate in Kenya 2024

Are you a Kenyan taxpayer seeking a Tax Compliance Certificate (TCC)? This vital document is essential for various purposes, from job applications to government tenders. In this comprehensive guide, we will walk you through the process of applying for a Tax Compliance Certificate in Kenya using the enhanced and simplified iTax Portal.

Key Takeaways

1. A Tax Compliance Certificate is essential for individuals and businesses in Kenya as it is evidence of tax compliance and is required for various transactions.
2. The application process for a Tax Compliance Certificate has been simplified through the KRA iTax platform, making it more accessible and efficient.
3. A Tax Compliance Certificate is valid for twelve months from the date of issuance.
4. Taxpayers with pending tax returns or unpaid tax liabilities must address these issues before applying for a Tax Compliance Certificate, as non-compliance can hinder the application process.

The Kenya Revenue Authority (KRA) was established by an Act of Parliament, Chapter 469 of the laws of Kenya, which became effective on 1 July 1995. KRA plays a crucial role in collecting revenue on behalf of the government of Kenya. One of its essential functions is to issue taxpayers Tax Compliance Certificates (TCCs) as proof of their tax compliance.

What is a Tax Compliance Certificate (TCC)?

A Tax Compliance Certificate, commonly called a TCC, is an official document issued by KRA that verifies a taxpayer's compliance with tax laws. It is essential for various purposes, including:

1. Applying for a job (required upon job offer).
2. Applying for government tenders.
3. Renewing a work permit.
4. Obtaining a clearing and forwarding agent's license.
5. Seeking a license to operate a liquor store.
6. Confirming your compliance status.
7. Various other transactions.

Tax Compliance Validity

Tax Compliance Certificates are valid for twelve months from the date of issuance. You can check the validity of your TCC using the new KRA M-Service App, which offers more convenience and accessibility.

Tax Compliance Certificate Application Requirements

Before you begin the application process for a Tax Compliance Certificate, ensure you have the following requirements:

1. KRA PIN Number: You must have your KRA Personal Identification Number (PIN). If you've forgotten or need to retrieve your PIN, you can request a KRA PIN Retrieval online.
2. iTax Password: You'll need your iTax password to access your iTax Account. If you've forgotten your password, you can reset it.

Steps to Apply for a Tax Compliance Certificate

Step 1: Visit the KRA iTax Portal using this link.

Step 2: Enter your KRA PIN Number and click "Continue."

Step 3: Enter your iTax Password and solve the arithmetic question (security stamp), then click "Login" to access your iTax Account.

Step 4: You'll see your iTax Account Dashboard once logged in.

Step 5: Click on the "Certificates" tab, then select "Apply for Tax Compliance Certificate (TCC)" from the dropdown menu.

Step 6: A popup window will appear with a message confirming that you are entitled to a Tax Compliance Certificate without any workflow. Click "OK" to proceed.

Step 7: Fill in the reason for your Tax Compliance Certificate application (e.g., job application) and click "Submit."

Step 8: Download the approved Tax Compliance Certificate. Be sure to keep a copy for future reference.

Who Can Get a Tax Compliance Certificate Immediately?

Under the enhanced iTax system, the following groups of taxpayers can receive their Tax Compliance Certificates immediately upon application:

1. New Taxpayers: Those who have recently obtained their KRA PINs.
2. Compliant Taxpayers: Those who have filed their tax returns and paid taxes as required by law.

Who Cannot Get a Tax Compliance Certificate During Application?

In certain situations, taxpayers cannot apply for a Tax Compliance Certificate on iTax. These include:

1. Taxpayers with Pending Returns: Those still need to file their KRA Returns for specific years on iTax.
2. Taxpayers with Pending Payments: Those who have outstanding tax liabilities or penalties.

Suppose you fall into one of these categories. In that case, you must address pending returns or payments before applying for a Tax Compliance Certificate.

If you have any questions or face challenges during the application process, seek assistance from KRA or consult a tax professional. Remember that a Tax Compliance Certificate is a valuable document that can open doors to various opportunities in Kenya's business and employment landscape. Stay compliant, and success will follow.

READ ALSO: Tax Compliance Certificate: What Is It, How to Apply, Check Status, Download, and Costs

Conclusion

Obtaining a Tax Compliance Certificate in Kenya has always been challenging, thanks to the simplified and enhanced process on the iTax Portal. Whether you need it for a job application, tender, or other purposes, following the steps outlined in this guide will help you secure your Tax Compliance Certificate efficiently.