Expert want expense deductibility delinked from eTIMS
NAIROBI, Kenya, Jan 13 - Leading tax policy expert is calling for an urgent rethink of the Finance Act 2023’s electronic invoicing mandate, warning that Kenya breaking news | Kenya news today |..
✨ Key Highlights
A leading tax expert in Kenya is urging a separation of expense deductibility from eTIMS compliance, warning that the current mandate in the Finance Act 2023 could significantly harm businesses, particularly MSMEs, by disallowing legitimate expenses if not supported by an electronic tax invoice by January 1, 2026.
- Edna Gitachu, a tax analyst, proposes adopting a "Rwanda Model" to allow alternative proof for legitimate expenses.
- The Kenya Revenue Authority (KRA) is standing firm, citing risks of fictitious invoices and recent improvements like eTIMS Lite.
- Gitachu also highlighted an "accounting mismatch" where the KRA's eTIMS system captures invoice generation as immediate income, ignoring standard accounting practices for deferred revenue.
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