The Kenya Revenue Authority (KRA) has explained how taxpayers can address rejected 2025 tax returns linked to income and expense mismatches in the Electronic Tax Invoice Management System (eTIMS).
The clarification follows concerns raised by taxpayers on social media about repeated rejections of validated returns, with errors indicating inconsistencies between the declared figures and the data reflected in the eTIMS system.
One taxpayer, identified as @charles_smng, said his return had been rejected despite following earlier filing guidance.
“My validated 2025 return has been rejected. The error message is that the income and expenses do not tally with what appears on eTIMS, yet you advised us to file 2025 with expenses not necessarily supported on eTIMS. Income on eTIMS is even less than actual income. Please advise,” he said.
KRA Explains Steps Taxpayers Should Follow to Fix eTIMS Tax Return Errors
In response, KRA Care explained that taxpayers with manual or non-eTIMS invoices are required to first upload them under the Return tab by selecting “Income Tax Return Adjustments – Manual & Non-eTIMS/TIMS Invoices.”
The authority further advised that such expenses should then be captured in the Tax Computation sheet, specifically in Row 6, under valid business expenses not supported by TIMS or eTIMS invoices.
“Hello Charles, please note that if you have manual or non-eTIMS expenses, a field has been provided under the Tax Computation sheet, Row 6, for capturing valid business expenses not supported by TIMS/eTIMS invoices,” KRA noted.
“However, these invoices must first be uploaded by navigating to the Return tab, then selecting Income Tax Return Adjustments – Manual & Non-eTIMS/TIMS Invoices before capturing them in the respective fields.”
KRA also clarified that any employment-related expenses should be declared under the employee expenses row.
Also Read: KRA Explains Business eTIMS Invoice Rules Ahead of June Deadline
This comes after the tax authority in April this year announced that income tax returns are now subject to upgraded system validations introduced for the 2025 filing period.
According to KRA, the system cross-checks declared income and expenses against eTIMS/TIMS invoices, withholding tax certificates, and other integrated data sources.
KRA said discrepancies may arise when taxpayers’ manual records differ from eTIMS data, or when invoices are not properly uploaded and matched within the system.
It added that variations may also occur due to adjustments such as credit notes, debit notes, and non-VAT invoices, which are processed differently during validation.
The authority said the upgraded system is designed to improve accuracy and compliance and may flag returns where declared income does not align with electronic records or where expenses lack proper supporting documentation.
KRA further explained that income and expense figures are not prefilled in the return template but are validated upon upload, meaning taxpayers must ensure proper reconciliation before submission.
Also Read: KRA Explains Business eTIMS Invoice Rules Ahead of June Deadline
The taxman said the iTax system now validates the accuracy of consolidated income declared from all sources in the profit and loss account against total income from eTIMS/TIMS invoices and gross income reflected in withholding tax certificates.
The authority noted that the system uses the higher of the eTIMS/TIMS records and the withholding tax certificates when performing validations.
In cases of discrepancy, the system flags the return and displays a validation message prompting correction before submission.
KRA further explained that taxpayers may declare a higher gross turnover than is supported by eTIMS/TIMS or withholding tax certificates, provided the figures are properly declared and supported.
