Due to increased diversion and use of counterfeit cheques, the Kenya Revenue Authority (KRA) has changed its tax collection methods. Taxpayers paying more than KES 100, 000 and Less than KES 1 Million will be required to use the Electronic Funds Transfer (EFT) facility. Alternatively, taxpayers can use Real Time Gross Settlement (RTGS) to transfer funds through their banks to the the specified Central Bank of Kenya accounts.
The taxman has also made it clear that following the implementation of the Cheque truncation system, old and non-compliant cheques will not be accepted.
[READ: Inside Kenya’s New Cheque System]
This is in effect to Friday August 17th, the due date for taxpayers who include individuals and companies. The exercise will involve submission of:-
- Withholding Taxes (July 2012)
- Instalment Tax from taxpayers whose Accounting periods end on 3oth April (1st Instalment), 28th February(2nd Instalment), 30th November (3rd Instalment), 31st August(4th Instalment)
- VAT monthly returns,
- Standards Levy and Sugar Development Levy Returns for the month of July 2012
- Excise duty for the month of July 2012.