The Kenya Revenue Authority (KRA) has warned that it will begin automatically filing tax returns for individuals and businesses that fail to submit their returns by the June 30 deadline.
In a public notice issued on Tuesday, June 9, the tax authority said taxpayers who do not comply will be subjected to default assessments under Section 29 of the Tax Procedures Act, which empowers KRA to determine a taxpayer’s obligations.
KRA indicated that it will rely on information already available in its systems to generate the returns.
"Taxpayers who fail to file returns by June 30, 2026, will be subject to default assessments in accordance with Section 29 of the Tax Procedures Act, Cap 469B," KRA stated.
Under the arrangement, taxpayers who miss the filing deadline will have their tax liabilities calculated using internal records and other compliance data held by the authority.
Despite filing the returns on behalf of defaulters, KRA noted that the Ksh2,000 late-filing penalty will still apply.
The move means taxpayers who fail to file independently may forfeit the chance to accurately declare their income, deductions, expenses, tax reliefs and other relevant details. Consequently, the tax obligation assessed by KRA could differ from what the taxpayer would have reported.
Because default assessments are based only on information available to KRA at the time, they may not fully capture a taxpayer’s actual financial position, potentially leading to under-assessments, over-assessments or disputes that may require objections, reviews or amendments.
Meanwhile, KRA has offered temporary relief to businesses by allowing them to declare legitimate expenses not backed by electronic Tax Invoice Management System (eTIMS) invoices when filing 2025 income tax returns.
In the same notice, the authority said taxpayers can declare valid business expenses that lack eTIMS documentation, easing compliance requirements for businesses.
"To facilitate smooth filing for the 2025 Year of Income, KRA has allowed taxpayers to declare valid business expenses that may not be supported by eTIMS/TIMS invoices. Such expenses may be uploaded during filing and will be subject to validation by KRA after submission," KRA stated.
The concession, however, applies only to the 2025 year of income. KRA emphasised that from 2026 onwards, all declared income and expenses must be supported by electronic tax invoices generated and transmitted through eTIMS.
"From the 2026 Year of Income onwards, all declared income and expenses must be supported by valid electronic tax invoices generated and transmitted through eTIMS/TIMS," the authority added.
