KRA Announces Key Changes for 2025 Tax Filers as Deadline Approaches

The Kenya Revenue Authority issued a notice on June 8 outlining adjustments aimed at easing the process for taxpayers preparing their 2025 income tax returns.

This temporary reprieve allows filers to declare valid business expenses even in the absence of supporting eTIMS or TIMS invoices during this cycle. KRA will conduct validation checks after submission.

The Commissioner for Micro and Small Taxpayers confirmed that the concession applies exclusively to the 2025 year of income. From 2026 onward all declared income and expenses must include valid electronic tax invoices generated through the eTIMS system.

The June 30 2026 filing deadline remains firm with no indication of extensions. Taxpayers who fail to submit on time will face default assessments based on available data under Section 29 of the Tax Procedures Act.

Such assessments commonly result in higher estimated liabilities along with added penalties and interest. Section 73(3) provides the commissioner with the authority to act in these circumstances.

Many businesses are still navigating the challenges of the electronic platform rollout. The one-year flexibility acknowledges reported system delays and adjustment costs experienced across various sectors.

KRA has steadily intensified digital compliance measures in recent years to improve transparency and curb tax evasion. Despite the current relief the notice clearly signals tightening rules ahead.

Taxpayers are advised to keep detailed and organised records to support any declarations. Unsupported expenses are likely to attract closer post-filing scrutiny during validation.

Revenue collections have shown shortfalls in the current financial year. Ordinary revenue stood at KSh 1.82 trillion by March 2026 against a higher official target.

The authority continues to pursue additional measures including proposals for mandatory landlord registration on rental income reporting systems. The June deadline is now only weeks away.