A Tax Compliance Certificate (TCC) is an official document issued by the Kenya Revenue Authority (KRA) to prove that you have paid all your taxes and filed all relevant returns. It is also known as a tax clearance certificate, and is a requirement in various legal and business transactions.
Several transactions and activities require a TCC in Kenya, including applying for government tenders, registering a business license, and applying for jobs. Whether you are an individual or a business, understanding the TCC application process and requirements is crucial. We prepared this guide to show you how to apply for the KRA TCC and the requirements.
Importance of KRA Tax Compliance Certificate
A KRA tax compliance certificate comes in handy in various instances. It’s a requirement in the following situations, among others:
- Job application
- Government tender application
- Application for a clearing and forwarding agent license
- Application for work permit renewal
- Application for liquor store operating license
- You are curious about your tax compliance status
TCC Eligibility Criteria (Requirements)
KRA can approve or reject your TCC application, depending on several factors. It is important to know whether you even qualify for the certificate before wasting time and resources applying for one. So, who qualifies for a TCC? Below are the TCC requirements in Kenya:
- You have a valid KRA PIN
- You have filed all due tax returns
- You have paid all outstanding taxes and have no penalties
What Documents and Information are Required To Apply for TCC in Kenya?
Once you’ve determined you’re eligible for a KRA tax clearance certificate, the next step is to prepare the documents and information required to complete the application process. Preparing these documents beforehand will simplify the application and save time. Below are the required documents to apply for KRA TCC:
- KRA PIN
- National ID
- Certificate of Incorporation (for businesses)
- An up-to-date tax return history, like business invoices for VAT, payslips for PAYE, KRA Acknowledgement receipts, etc.
- Relevant tax obligations like Income tax, PAYE, VAT, MRI, etc.
Now that you’ve all the information and documents needed for the application process, let’s get into the steps. KRA TCC application is conducted online via the iTax portal.
How to Apply for KRA Tax Compliance Certificate: Step-by-Step Guide
Here’s the step-by-step guide to applying for a KRA tax compliance certificate in Kenya:
Step 1: Access the KRA Portal
Visit the iTax Portal on a web browser.
Log in to your account using your KRA PIN and password. Follow the on-screen instructions, like solving an arithmetic question, to complete the login process.
Step 2: Navigate to the Certificates Section
Once you’ve logged into your account, navigate to the Certificates section. Click on the menu and select Apply for Tax Compliance Certificate (TCC).
You will be taken to a new window with a form.
Step 3: Fill Out the Online Application Form
The website will autofill the TCC application form with your details, including KRA PIN, name, address, personal, and business information. Verify the details to ensure they are accurate. If you need to update some of the details, like phone number and email addresses, do so. You’ll also be asked why you are applying for the TCC certificate. Select the applicable reason.
Step 4: Submit the Application
Quickly go over your completed form one last time to verify that all the information is correct. Once you’re satisfied, click Submit to tender the application to KRA.
Step 5: Wait for Feedback
KRA will assess your application and provide feedback as soon as possible. If the application was successful, i.e, you don’t have pending tax returns and penalties, etc, the system will autogenerate an approval message alongside the TCC certificate.
Note: If there are pending issues with KRA, like tax debts, unfiled returns, or penalties, KRA will send you an alert to resolve the matter. You will only get a TCC certificate if you solve this issue. An approval message from KRA reads,
“Auto Approval for Tax Compliance Certificate has been submitted successfully.” Alongside this message is an acknowledgment number and a download link for the tax compliance certificate.
Step 6: Download the Tax Compliance Certificate
Once you receive the approval notification, the acknowledgement number, and the download link, you’re good to go. Click on the provided download link to download the tax compliance certificate. This certificate is valid for 12 months.
Tax Compliance Certificate Application Tips to Avoid Rejection
KRA might reject your TCC application for various reasons. You need to understand common reasons for rejection to avoid them. Here are some of the common reasons why the KRA TCC application is declined:
- Pending tax returns and debts
- Incorrect personal and business information
- Incomplete tax obligations. For example, a retailer who only files income tax, even though they are eligible for VAT.
- Audit inconsistencies and flagged accounts
If your TCC application has been declined and the online steps to rectify the issue do not resolve the issue, contact KRA customer care. You can do so on the KRA website or visit your nearest KRA office.
Bonus Tips For a Smooth TCC Application
If you want to have an easy time with tax compliance certificate application and renewal, you need to maintain a good reputation with KRA. Follow these tips to ensure a smooth TCC application:
- File your taxes on time
- Ensure you fulfill all your tax obligations
- Seek assistance from an expert tax consultant
Final Thoughts
The KRA tax compliance certificate is important to individuals and businesses alike. It is required in various legal and business contexts, and obtaining it when needed is crucial. This detailed guide explained what a TCC entails, the requirements, and how to apply for one in Kenya.
Applying for a TCC is straightforward, but you can never go wrong by hiring an expert to handle it for you. At Gichuri & Partners, we provide comprehensive tax compliance services, including the application for a KRA TCC certificate.
Our expert team will facilitate the whole application process to ensure all required data is provided accurately for prompt approval. We will help you identify all your tax obligations, file returns on time, and resolve any pending issues in case of initial rejection. Need help with your KRA tax compliance certificate application? Let our expert tax consultants handle it for you- a quick, accurate, and hassle-free application. Get in touch.
