The Kenya Revenue Authority (KRA) has released fresh guidelines for businesses seeking to claim expenses that are not supported by the Electronic Tax Invoice Management System (eTIMS) ahead of the June 30 income tax filing deadline.
The tax authority announced that taxpayers will be allowed to declare legitimate business expenses incurred without eTIMS or TIMS invoices under a temporary concession, provided they follow a prescribed process through the iTax platform.
New iTax Feature Introduced
To facilitate the process, KRA has introduced a new section on iTax dubbed “Income Tax Return Adjustments Manual & Non-eTIMS/TIMS Invoices.”
Businesses intending to claim such expenses must first access the feature before submitting their 2025 income tax returns.
Under the new procedure, taxpayers will be required to select the 2025 tax period and indicate whether they wish to declare manual or non-eTIMS/TIMS expenses. The system will then allow users to download a CSV template where they will enter details of the transactions.
The information required includes supplier names, invoice numbers, invoice dates, descriptions of goods or services purchased, and the corresponding amounts.
Supporting Documents Required
After completing the template, taxpayers must upload it back to the system together with supporting documentation.
KRA has directed that all supporting invoices and related records be merged into a single PDF file not exceeding 10MB in size before submission.
While supplier PIN numbers are not mandatory under the temporary arrangement, the authority noted that any PIN provided will be subjected to system verification to confirm that it belongs to the indicated supplier.
KRA Warns Against Filing Errors
The authority has cautioned taxpayers to adhere strictly to the prescribed formatting requirements when filling out the template.
According to KRA, common mistakes such as inserting special characters, using commas in numerical figures, or entering incorrectly formatted amounts may cause upload failures and delays in processing.
Despite granting businesses an opportunity to declare expenses without electronic invoices, KRA emphasized that all submissions will undergo review and validation after filing to determine whether they qualify for tax deductions.
Deadline Remains June 30
The tax authority has urged businesses to complete the process before the June 30 deadline to avoid penalties and compliance issues.
KRA warned that taxpayers who fail to file their returns on time risk being subjected to default assessments under Section 29 of the Tax Procedures Act.
The temporary concession is expected to provide relief to businesses that incurred genuine expenses outside the eTIMS framework, even as the authority continues to push for full adoption of electronic invoicing systems as part of its broader tax compliance strategy.
