The taxman said that the new mobile phone registration mandate published by the Kenya Revenue Authority (KRA) will not impact Kenyans and tourists who import mobile devices for personal use.
Those who carry mobile gadgets with their luggage would not be impacted by the system, according to a statement from KRA that Kenyans.co.ke was able to receive. Additionally, they will be exempt from paying tax on goods up to $2,000 (Ksh258,000) that they bring in for personal use.
All devices on roaming numbers (foreign tourists who enter the nation with foreign numbers) will not be subject to any disclosure procedures for travelers, tourists, and other visitors.
“No declaration procedure will apply to any devices on roaming numbers. A support procedure would be available to visitors purchasing local SIM cards to help them comply with network requirements,” KRA stated.
The tax collector also informed all tourists, local device producers, and importers of mobile phones of the new rule, which will go into force on January 1, 2025.
As part of its Enterprise API Integration (EAPI) initiative, KRA is working with the Communications Authority (CA) to deploy a Mobile Device Declaration System in order to broaden the tax base.
Through the use of IMEI (International Mobile Equipment Identity) numbers for efficient compliance monitoring, this effort aims to guarantee correct tax declaration, payment, and verification for mobile devices imported into or produced within Kenya.
KRA claims that the plan would guarantee that all imported gadgets are subject to the relevant taxes rather than immediately raising the cost of importing phones.
In order to guarantee that every device entering Kenya is listed in the tax database, the system requires importers, producers, and travelers to report mobile devices using their distinct IMEI numbers.
KRA claims that by guaranteeing that all importers, producers, and mobile device users abide by current tax regulations, the declaration system would improve revenue collection, level the playing field for businesses, and encourage fair tax practices.
Through IMEI whitelisting, the new method also seeks to improve transparency, encourage national growth, and lessen tax fraud.
How will KRA’s new system operate, then? For the purposes of validation, tax compliance, and whitelisting, both individual and bulk importers as well as clearing agencies will need to enter the IMEI numbers of the mobile devices they are importing into the iCMS and DIR systems.
For validation and whitelisting, local assemblers will enter the IMEI numbers of assembled devices for the local market into the DIR system. To be considered compliant, phone retail wholesalers that have device inventory must update their phone IMEI status by January 1, 2025.
It would be mandatory for all Kenyans to verify that their IMEIs are not blacklisted from the network before making a purchase.
The taxman clarified that if you are a Kenyan resident returning from a foreign country, you must register mobile devices with their IMEI numbers on the F88 passenger declaration form upon entrance and pay any appropriate taxes.
According to KRA, this decision was made following public consultation with important industry participants, such as importers and producers, in order to include their input into the implementation plan.
According to the tax man, Kenyans will also benefit from this new system as it will protect them from fake mobile devices that are detected during the IMEI reporting procedure and turned over to the appropriate authorities.
Importers and assemblers who disregard these new rules would face severe repercussions, according to KRA.
“On importation, for devices which have not paid taxes, they will be deposited until such payment is done” , the organization stated. Only gadgets imported or built in Kenya are subject to the new rules as of November 1, 2024.
LINK: https://t.co/O4ZzJ7sMyp
