Effective 01st October, 2016, the Kenya Revenue Authority discontinued the manual payment system of both the Stamp duty and Capital Gains Tax (CGT) and an online payment system through the iTax portal was introduced.
iTax support desks have been set up at the Ministry of Lands Registries and in all Huduma Centers country wide to aid the general public in the transition to the new system.
For payment of stamp duty, taxpayers are now required to first visit the Ministry of Lands offices, Land Registries or Huduma Centre desks for assessment of the correct stamp duty payable after which they are required to log into the iTax portal and generate a payment slip for the assessed stamp duty.
Thereafter, upon filing the payments of CGT, taxpayers should manually fill a form downloaded from the website together with the e-slip generated to pay at the bank. However, the online form is still in the process of being developed and will be deployed on iTax once it is ready. This will complete the CGT return filing and payment on iTax. The payment options provided are either through cash, cheques or Real Time Gross Settlement (RTGS).
For completion of the transfer of property process, applicants shall be required to make simultaneous payments of both the stamp duty and CGT. This should be on or before the application of transfer of property at the relevant Lands Registry.
With the new online payment system, taxpayers will enjoy improved data accuracy and automated receipt and payment processing. It makes it easier to track and monitor data to ensure compliance with the tax regulations and rules. Further, the new payment system aids in preventing payment fraud better than paper-based payments could achieve and enable less reliance on time-consuming and costly manual payment processes.
Please find a step by step guide for both stamp duty and CGT payments at the links provided below; http://www.kra.go.ke/index.php/notices/kra-news/payment-of-stamp-duty-through-itax
http://www.kra.go.ke/index.php/capital-gains-tax/step-by-step-guide-payment-of-cgt-through-itax
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