Kenya Revenue Authority (KRA) has over the year’s transformed its processes by adopting technology to improve taxpayers’ experience. Through its transformation programme, KRA has integrated processes and facilitated taxpayers through systems such as iTax, iCMS, Soma Label amongst others.
Recently, the tax collector added to its menu a Mobile application (App) called M-Service. M-Service is an App created to provide ease of payment and conveniently facilitate tax compliance. The App also comes in handy for verification processes such as authenticating a PIN and a Tax Compliance Certificate (TCC). The application is available on Google Play Store for android phones and USSD service. Services available on the application include; PIN application, registration for, and payment for Monthly Rental Income (MRI) and Turn over Tax (TOT).
Turnover Tax (TOT) is charged on gross sales of a business as per Sec. 12 (C) of the Income Tax Act. It is payable by any resident person whose turnover from business is more than sh. 1 million and does not exceed or is not expected to exceed sh. 50 million during any year of income. Turnover Tax is charged at the rate of 1% on gross sales. The due date for filing and paying TOT is on the 20th day of the following month.
Monthly Rental Income (MRI) tax is applicable to property owners or landlords with rental income of between Kshs. 144,000 per annum (Kshs. 12,000 per month) and Ksh. 10 million per annum or. The due date for filing and paying MRI is on the 20th day of the following month.
How to use KRA M-service to pay your taxes.
Go to M-Pesa Menu
Select Lipa Na M-PESA
Select Pay Bill
Enter Business no. Paybill Number 572572
Enter your account number type a valid E-slip number as obtained via iTax
Enter the exact amount as per the e-slip
Enter your M-Pesa PIN
Review payment details and select OK to confirm your M-payment
M-pesa will send you a text message to confirm a debit on your mobile wallet float
You will receive a message from KRA informing you that payment has been received
Download the app today from the Google Play Store.
BLOG 03/08/2020