In Kenya, a Tax Compliance Certificate (TCC) is an official document issued by the Kenya Revenue Authority (KRA) that certifies that an individual or business is compliant with their tax obligations. Here are the key details about a TCC in Kenya:
- Purpose: The TCC is required for various transactions, including applying for government tenders, contracts, and licenses. It is also needed for immigration purposes, registration of businesses, and in some cases, for bidding on jobs or applying for loans.
- Issuing Authority: The Kenya Revenue Authority (KRA) is the body responsible for issuing Tax Compliance Certificates in Kenya.
- Eligibility: To be eligible for a TCC, a taxpayer must have filed all required tax returns, paid all due taxes, and be compliant with all tax obligations, including Value Added Tax (VAT), Pay As You Earn (PAYE), and other applicable taxes.
- Application Process:
- Online Application: Taxpayers can apply for a TCC through the KRA’s iTax portal. The process involves logging into the iTax system, filling out the application form, and submitting it online.
- Review: The KRA reviews the application to ensure that the taxpayer is compliant with all tax obligations.
- Issuance: If the taxpayer is found to be compliant, the TCC is issued and can be downloaded from the iTax portal.
- Validity: In Kenya, a TCC is typically valid for twelve months from the date of issue. After this period, taxpayers must reapply for a new certificate.
- Importance: Holding a TCC is crucial for businesses and individuals in Kenya as it is often a requirement for engaging in various commercial and governmental activities. It also enhances the credibility and reliability of the business.
- Penalty for Non-Compliance: Failure to obtain or present a valid TCC when required can result in penalties, fines, and disqualification from certain business opportunities.
In summary, a Tax Compliance Certificate in Kenya is an essential document that confirms a taxpayer’s adherence to tax regulations, enabling them to engage in various legal, business, and governmental transactions.