KRA Explains How to Fix Rejected 2025 Tax Returns Over eTIMS Mismatches

The Kenya Revenue Authority (KRA) has issued guidance for taxpayers struggling with rejected 2025 income tax returns. The problems arise from mismatches between declared income and expenses and records in the Electronic Tax Invoice Management System (eTIMS).

Many affected individuals turned to social media with their complaints. One taxpayer reported that his return was flagged even after he followed earlier advice from the authority. The error message pointed to inconsistencies with eTIMS data despite his actual income being higher than what the system reflected.

KRA Care responded directly to such queries. Taxpayers with manual or non-eTIMS invoices must first upload them. They do this by going to the Return tab and selecting Income Tax Return Adjustments for Manual and Non-eTIMS/TIMS Invoices.

After uploading, these expenses go into the Tax Computation sheet. Specifically, they belong in Row 6 under valid business expenses not supported by TIMS or eTIMS invoices. This step reconciles the records properly before final submission.

Employment-related expenses follow a different route. Taxpayers should declare them under the dedicated employee expenses row. The authority stressed careful handling to avoid validation failures.

Upgraded system checks now compare declared income and expenses against eTIMS and TIMS invoices. They also cross-reference withholding tax certificates and other integrated sources. Discrepancies trigger automatic flags.

The validation process does not prefill income or expense figures in the return template. Taxpayers bear responsibility for accurate reconciliation. The system takes the higher of eTIMS records or withholding tax data during checks.

KRA introduced these enhanced validations in April for the 2025 filing season. The goal is greater accuracy and compliance. Credit notes, debit notes and non-VAT invoices receive special processing that can affect outcomes.

Taxpayers may declare higher gross turnover than eTIMS supports. This is allowed as long as proper documentation backs the figures. The authority continues to remind everyone of the June 30 deadline for 2025 returns.

Proper upload and matching of invoices remains critical. Failure to follow the exact sequence often leads to rejection even after initial validation. KRA encourages double-checking all entries against system data.

The clarifications aim to ease filing pressures as the deadline approaches. Taxpayers who still face issues after corrections should contact KRA support for further assistance. Timely action helps avoid penalties under the Tax Procedures Act.