Did you know that it is quite easy to file your tax returns without having to get stuck on long queues at Kenya Revenue Authority (KRA) offices every year?
Through KRA’s web-based platform dubbed iTax, you can file your returns from the comfort of your couch.
Individual Income tax returns need to be submitted by the June 30, deadline.
Avoid incurring the Ksh2000 fine imposed on late filing by following the step-by-step guide below.
Filing Individual Tax returns on iTax
Submission of income tax returns is an online process done via iTax
- Open your browser and go to https://itax.kra.go.ke/KRA-Portal/
- Enter your KRA PIN, click Continue. Enter Password and Security Stamp ( answer to arithmetic sum) and Click Log In
- Go to Returns Menu and select ITR For Employment Income Only
- Enter Return Period, select ‘Yes’ to the question ‘Do you have employment income?’ and Click ‘Next’
- Under basic information, answer the questions asked appropriately and Click ‘Next’
- Go to Section F, details of employment income and confirm the name and PIN of employer, Gross Pay and other allowances as per your P9 form.
- Go to Sheet M, details of PAYE deducted, confirm Employer details, Taxable salary, chargeable pay, Tax payable on taxable salary and PAYE deducted. Details can be modified as per your P9.
- Go to Section Q and capture a payment if any, made prior to the filing of the return.
- Go to Section T, Tax Computation, Enter defined/pension contribution amount (as per your P9 actual contribution by employee) and personal relief.
- Click ‘Submit’ and download the E-return acknowledgment receipt.
Filing Nil returns
Nil income tax returns help the taxman identify all taxpayers that fall below the taxable income or are unemployed and earning no salary that include university students. The minimum taxable income in Kenya is Ksh. 12,000.
Here’s how to file KRA nil returns online:
- Type ‘iTax’ on your Google search tax and click on the KRA iTax website www.itax.kra.go.ke
- Enter your KRA PIN, click Continue. Enter Password and Security Stamp ( answer to arithmetic sum) and Click Log In
- After logging in, scroll to the navigation bar and select ‘e-returns’, which will open a set of options. Underneath the options, scroll downwards and click on ‘file nil returns’.
- AFTER Log in, update the professions menu then return to file NIL Return.
- On the taxpayer PIN, insert your KRA pin and on the ‘Tax Obligation’ option insert ‘Income Tax resident.’ then submit.
- Select Tax obligation and next fill in the returns period from and return period to will be populated obligation time frame then click submit button.
- If the process is successful, an acknowledgement receipt of e-returns will appear following a successful submission message.
- Download the returns receipt and you are done.
Filing PAYE (Pay As You Earn) returns
PAYE (Pay As You Earn) is a method of tax deduction from employees’ salaries or wages and it applies to all income from any office or employment.
Here’s how to file KRA PAYE returns online:
- Log on to https://itax.kra.go.ke/KRA-Portal/ from your browser
- Enter your KRA PIN, click Continue. Enter Password and Security Stamp ( answer to arithmetic sum) and Click Log In
- Under the returns section, click on file returns then select income Tax followed by the PAYE option.
- Click on the returns tabs and then the last item ITR for employment income
- Fill in the sections marked with a red asterisk on Section A.
- Then in section T only two sections are necessary section 1.1 and 2.5
- Then Move to Section F fill out Total Employment Income.
- Click on the section M tab and check that taxable salary, tax payable on taxable salary and tax deducted salary tally the information reflected on the P9.
- Next in Section Q fill in the tax paid in advance if applicable. This is the last section of filling in the return. Once complimented click submit.
- If successful you will get a tab saying, “return slip generated’. You can click on the download returns slip to get your slip.
In the event you misplace your PIN or password, you can simply reset it by entering your KRA Pin and click on the ‘Forgot Password/Unlock Account’.
You will then be issued a new password which you will need to change immediately.
The deadline for filing tax returns is on the 30th of June every year. Failure to do so on time attracts a penalty of Ksh2,000.
