Presentation Contents

22 KRA Reform Programme

11 Overview of KRA

44 PIN e-Registration Sample Screens

66

Critical Success Factors / Lessons

04/13/23

33 Major Reforms Implemented

55

Conclusion / Questions

Overview of KRA11

Formation & Functions of KRA KRA was established by an Act of Parliament on 1st

July 1995

Functions

To assess, collect and account for all revenues in accordance with the relevant laws.

To advise on matters relating to the administration of, and collection of revenue under the written laws.

To perform such other functions in relation to revenue as the Minister may direct

KRA administers a total of 17 laws relating to revenue.

These are divided into 2 broad categories:

a) Exchequer revenues (Treasury) &

b) Agency revenues (revenue collected on behalf of other Government Agencies)

Laws Administered

Under Exchequer Revenue, the laws are: 1. Income Tax Act, Cap 4702. East African Community Customs

Management Act 3. Customs & Excise Act 4. Value Added Tax Act 5. Traffic Act6. Entertainment Tax Act7. Stamp Duty Act

Laws Administered cont’d…

KRA Reform Programme22

Tax Administration Reform Drivers Cont’d….. Specifically, the key drivers of reform are:

Enhance revenue Modernize administration/improve

service Reduce compliance burden Reduce administration costs Facilitate trade and investment Improve integrity

Status Before KRA Reforms • Manual business processes leading to service delays,

incorrect data, frustration, etc

• Duplication of functions and resources

• Lack of information sharing platform

• Lack of coordination in key business operations across the departments especially in field audit/compliance visits

• High administrative and compliance costs (KRA & customers)

• High level of corruption

• Low tax compliance and revenue levels

• Frequent customer complaints

PIN Registration Before Reforms

PIN Registration Before Reforms

Major Reforms Implemented33

Reforms on Improvement of Service Delivery To enhance service delivery and promote voluntary tax compliance to our customers, KRA has automated many functions, including:

Developed and implemented a web based Integrated Tax Management System (ITMS) to provide online tax services

Through ITMS, customers can now register for various tax obligations (including PIN) & file tax returns online at their own convenience

KRA also provides an online facility for authentication of Tax Clearance Certificates and PIN to eliminate possibility of fake documents in the market

PIN e-Registration After Reforms

PIN e-Registration After Reforms

PIN e-Registration After Reforms

ITMS – PIN e-Registration Sample Screens

44

www.kra.go.ke/portal

To apply for your PIN

PIN Assignment for New Taxpayer (Resident)

PIN Assignment for New Taxpayer (Non - Resident)

PIN Assignment for New Taxpayer (Company)

PIN Registration Form

PIN Certificate

Critical Success Factors / Lessons in Implementation of Reforms

Senior Management SupportSenior Management Support

Strategic PlanStrategic Plan

Committed TeamCommitted Team

Funding & ResourcesFunding & ResourcesGovernment SupportGovernment Support

Stakeholders ConsultationStakeholders Consultation

Project ManagementProject Management

Change ManagementChange Management

Technology LeadershipTechnology Leadership

55

Legal ReformsLegal Reforms

Conclusion

Since the implementation of the comprehensive reform programme, revenue collection has increased, service delivery has improved & KRA has positioned itself on the road to being a best practice revenue administration institution.

66

Thank You!

Ahsanteni Sana!

Questions?