The Kenya Revenue Authority (KRA) has notified the public through a notice published on their website and social media accounts that they have migrated VAT and income tax ledger balances from the legacy system to the iTax system. Below is what you need to know:

What is the legacy system?

The legacy system refers to the older KRA system before the introduction of iTax.

Who will be affected?

All taxpayers with outstanding balances in the legacy system will be affected.

What is required?

Taxpayers are advised to review their iTax profile for a detailed statement of the migrated balances. The statement can be accessed under the ‘Debt & Enforcement’ menu and then ‘Account Type – Taxpayer Account’.

• Disagreement with migrated debit balances: If a taxpayer disagrees with the migrated balances, they are required to submit additional information/documentation to support their claim;
• Agreement with migrated balances: If in agreement, the taxpayer will be required to make payment for the outstanding balances; and
• Credit Balances: Any credit balances transferred will be available for offset against any outstanding tax liability in accordance with the Tax Procedures Act.

Deadline for submission of information/documentation

The deadline for submission of information/documentation is 31 December 2024.

Consequences of missing the deadline

If a taxpayer does not submit any information or supporting documentation for the migrated debit balances by the deadline, the amounts will be confirmed and demand notices for the taxes will be issued. Kindly contact our tax service team if you require assistance in reviewing your statement and responding to KRA.