Skip to main content

Section 23

Record-keeping 

(1) A person shall-
  • (a) maintain any document required under a tax law, in either of the official languages; 
  • (b) maintain any document required under a tax law so as to enable the person’s tax liability to be readily ascertained; and 
  • (c) subject to subsection (3), retain the document for a period of five years from the end of the reporting period to which it relates or such shorter period as may be specified in a tax law. 
(2) The unit of currency in books of account, records, paper registers, tax returns or tax invoices shall be in Kenya shillings.

(2A*) Despite subsection (2), the unit of currency in books of account, records, paper registers, tax returns or tax invoices in respect of a non-resident person carrying on business through a digital marketplace shall be in convertible foreign currency as may be approved by the Commissioner. (Finance Act 2021- wef-01July2021*)

(2B*) The provisions of subsection (2) shall not apply to a non-resident person who files returns and makes payments through a resident tax representative or non-resident person with a permanent establishment. (Finance Act 2021- wef-01July2021*)


(3) When, at the end of the period specified in subsection (1)(c), a document –
  • (a) relates to an amended assessment, the person shall retain the document until the period specified in section 31(7) has expired; or 
  • (b) is necessary for a proceeding commenced before the end of the five year period, the person shall retain the document until all proceedings have been completed. 
(3A) A trustee resident in Kenya who administers a trust registered in Kenya or outside Kenya shall maintain and avail to the Commissioner records required under a tax law, whether the income generated is subject to tax in Kenya or not.(3A) A trustee resident in Kenya who administers a trust registered in Kenya or outside Kenya shall maintain and avail to the Commissioner records required under a tax law, whether the income generated is subject to tax in Kenya or not.  (Finance Act 2023 wef 1st-July-2023  s51) 

(4) When a document referred to subsection (1) is not in an official language, the Commissioner may, by notice in writing, require the person required to keep the document to provide, at the person’s expense, a translation into an official language by a translator approved by the Commissioner by the date specified in the notice.

(5) Despite anything in any tax law, the Regulations may provide for a simplified system of record-keeping for small businesses.

23A: Electronic tax invoices.  (Finance Act 2023 wef 1st-September-2023 S52)

(1) The Commissioner may establish an electronic system through which electronic tax invoices may be issued and records of stocks kept for the purposes of this Act. 
(2) A person who carries on business shall— 
  • (a)issue an electronic tax invoice through the system established under subsection (1); and 
  • (b)maintain a record of stocks in the system established under subsection (1). 
(2A*) An electronic tax invoice issued under subsection (2) shall contain the following information— (a)the words “TAX INVOICE”; 
(b)the name, address and Personal Identification Number of the supplier; 
(c)the name, address and Personal Identification Number, if any, of the purchaser; 
(d)the serial number of the tax invoice; 
(e)the date and time which the tax invoice was issued and the date and time which the supply was made, if it is different from the date the tax invoice was issued; 
(f) the description of the supply including quantity of the goods or the type of services; 
(g)the details of any discount allowed at the time of supply; 
(h)the consideration for the supply; 
(i) the tax rate charged and total tax amount of tax charged; and 
(j) any other prescribed information. (TPAA 2024 wef 27th December, 2024 S3*)

(3) Where an electronic tax invoice required to ascertain tax liability is issued by a resident person or the permanent establishment of a non-resident person, that invoice shall be generated through the system established under subsection (1). 

(3A*) Without prejudice to subsection (3), where a supply is received from a small business or a small-scale farmer, whose annual turnover does not exceed five million shillings, the purchaser shall issue a tax invoice for the purpose of ascertaining tax liability. (TPAA 2024 wef 27th December, 2024 S3*)

(4) The electronic tax invoice referred to in subsection (3) may exclude emoluments, imports, investment allowances, interest, airline passenger ticketing, payment of withholding tax* and similar payments. (TPAA 2024 wef 27th December, 2024 S3*)

(5) The Commissioner may, by notice in the Gazette, exempt a person from the requirements of this section.

Next


Comments

Post a Comment