The Tax Compliance Certificate (TCC) also referred to as KRA Clearance Certificate is a document issued by Kenya Revenue Authority to show that one has complied and filed tax returns as required by the law; that is, paying your taxes and filing your tax returns. It is vital to apply for a Tax Compliance Certificate since its part of the requirements for some services in Kenya such as; when entering into a contractual agreement with the government of Kenya or bidding for state tenders, when applying for jobs, especially in the government of Kenya agencies, when applying for renewal of Work Permit, when seeking a license to operate a Liquor Store, when you need to clear imported goods and services through the customs office and when one wants to confirm their compliance status. Also, note that the TCC is only valid for a period of 12 months from the date it was issued.
Related: How to Pay Presumptive Tax in Kenya
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Tax Compliance Certificate Application Requirements:
You need to have the following two requirements before applying for a TCC;
- KRA PIN NumberThe first thing you need to have with you is your KRA PIN Number. If you don’t have one, you can register one using this procedure.
- iTax Password
- Meet all terms and conditions specified by Kenya Tax Laws
- Declare the accurate the total incomes and earnings
- Paying off all balances and taxes
What is the Cost of a KRA clearance certificate?:
Applying for the KRA TCC online is free. However, you might incur non-compliance costs if you fail to meet the requirements stated above.
Related: How to pay KRA Penalties via M-Pesa
How do I get my Tax Compliance Certificate?
Step 1: Go to the KRA iTax portal and log in using your KRA PIN number and Password then solve the arithmetic question.
Step 2: Once you’re logged in to your iTax account dashboard, go to the menu click on the ‘Certificate‘ tab, then click on the ‘Apply for Tax Compliance Certificate (TCC) from the drop-down menu.
Step 3: A popup window will display a notification that says “please be informed that you are entitled to the TCC without any workflow, Please click OK to continue.” Go ahead and click OK to proceed.
Step 4: You will be required to provide a reason for making the application, once you are done with that click on the submit button.
Step 5: You will need to download the Approved TCC, you will also need to take note approval receipt for the TCC that also has an acknowledgment number associated with it.
How long does it take to get a tax compliance certificate in Kenya?
After applying for a TCC, if successful, you will receive your certificate via email after about five working days. If the application is unsuccessful, the KRA will give you guidelines on the way forward. This is by explaining why your application was rejected. You can reapply by taking the necessary steps listed above.