The Kenya Revenue Authority (KRA) has completed the migration of VAT and income tax ledger balances from its legacy system to the iTax platform. This transition aims to streamline the payment of historical tax liabilities and ensure accurate settlement of VAT and income tax. Taxpayers have been notified of their migrated balances through their registered email addresses.

Taxpayers can access these migrated VAT and income tax balances via their iTax profiles by navigating to the “Debt and Enforcement” section. This functionality allows them to download their balances, verify the details, address any discrepancies, and manage their tax responsibilities more efficiently.
The debit or credit balances are subject to further adjustment if additional information not previously accounted for by KRA during the reconciliation process becomes available. If taxpayers provide new details that affect their tax liabilities, the balances will be reviewed and modified accordingly.
For taxpayers with overpayment (credit) balances, the validated amounts will be applied toward future tax liabilities, as per Section 47(1)(a) of the Tax Procedures Act Cap 469B. This ensures that any overpayments can be effectively managed and utilized in future tax obligations, helping to improve financial planning and compliance.
It’s important to note that migrated debit balances are not considered formal tax assessments or demand notices. Therefore, they cannot be disputed or appealed. These balances can, however, be adjusted based on any additional information provided by taxpayers. Taxpayers have until 31 December 2024 to raise concerns regarding any discrepancies in the migrated debit balances. After this deadline, unresolved debit balances will be finalized, and demand notices for outstanding tax payments will be issued.
This migration to the iTax system represents a significant step forward in tax administration in Kenya. By facilitating the settlement of past tax liabilities and improving the accuracy of future payments, the initiative benefits both taxpayers and KRA. The transparent communication of migrated balances reflects KRA’s dedication to enhancing tax compliance, operational efficiency, and trust in the system.