The Kenya Revenue Authority (KRA) has defended its proposal to move the annual tax filing deadline from June 30 to April 30, saying the current timeline is no longer practical under the upgraded tax system.
Speaking during NTV’s Tax Symposium on Monday, KRA Commissioner for the Micro and Small Taxpayers Department George Obell said many taxpayers, especially salaried employees and nil-filers, no longer need to wait until June to submit returns since most details are now pre-filled in the system.
“Why would we wait for people filing nil returns to queue at the end of June?” Obell posed during the discussion.
According to the commissioner, the tax authority has seen a sharp increase in voluntary compliance in recent months, with about 97,000 new taxpayers paying KSh7.8 billion within four months despite previously not contributing any taxes.
Obell described the figures as proof that earlier filing can work if taxpayers are given the right support and systems.
KRA now plans to start sending taxpayers detailed pre-filled tax information from January 2027 ahead of the proposed April filing deadline.
The information will include data collected from eTIMS invoices, withholding tax certificates, and other third-party sources.
The commissioner said the move is aimed at making filing easier and reducing mistakes that often lead to penalties.
Obell also revealed that iTax is now being updated to enable businesses to monitor their transactions related to sales, purchases, bills, imports, exports, and withholding tax data through an online dashboard.
According to KRA, this move will ensure that the process becomes simple for all taxpayers.
The proposed changes have raised fears among some businesses and tax professionals who argue that the new deadline gives firms little time considering the complicated processes involved.
Some critics of this proposal have even gone further to point out that the current deadline, which ends on April 30th, was created to give firms ample time to sort out their financial statements for the June filing.
Other stakeholders including researchers have also questioned the move arguing that businesses, accountants, and auditors are currently overburdened by compliance issues in the existing regime.
KRA, however, assures the public that the proposals will be beneficial to the taxpayers not punitive at all.
Obell pointed to other countries like Rwanda where tax deadlines are considerably earlier, insisting that Kenya should consider moving to early filing as technology takes centre stage in tax administration.