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How To Pay Your Taxes On KRA’s New M-Service App

kra officers extorting business owners
Kenya Revenue Authority. [Courtesy]

The Kenya Revenue Authority (KRA) this week unveiled a new app that will allow taxpayers to keep up to date with their payments.

Over the years, KRA has transformed its services and adapted to new technology to enhance customer experience. Systems such as iTax, iCMS, Soma Label and others have been integrated to simplify and facilitate taxpayers processes.

The mobile application called M-Service is the latest addition, built with the aim of facilitating tax compliance and easing the payment process. The app will also help with verification of processes such as PIN authentication and a Tax compliance certificate. Services available on the app include Pin Application, Registration for/and Payment for Monthly Rental Income and Turnover tax.

Turn over Tax (TOT) is applied to the gross sales of business in compliance with Section 12 (C) of the Income Tax Act. This is payable by any resident whose business turnover is above Sh1 million and does not exceed Sh 50million during the year of income.  TOT is charged at a 1 per cent rate on the value of gross sales. The deadline for filing and paying TOT is on the 20th day of the following month.

Read: KRA Sets Up Special Unit For Digital Taxation

Monthly Rental Income (MRI) is applicable to landlords or property owners with rental income below Sh144,000 or where the rent income is Sh12,000 per month. The deadline for paying MRI is on the 20th day of the following month.

How to use the M-Service App to pay your taxes

  1. Go to Mpesa
  2. Select Lipa na M-Pesa
  3. Select Paybill
  4. Enter Paybill business number; 572572
  5. Enter account number which is the E-slip number you obtain from iTax
  6. Enter the amount as on the e-slip
  7. Enter Mpesa pin
  8. Wait for confirmation message from M-Pesa and KRA alerting you that the payment has been received.

The M-Service app is available on Google play store for Android and Apple app store for iPhone.

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Written by Vanessa Murrey

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