Did you know that it is quite easy to file your tax
returns without having to get stuck in long queues at Kenya Revenue Authority
(KRA) offices every year?
Through KRA's now-famous 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
1. Open your browser and go to www.itax.kra.go.ke
2. Enter your KRA PIN, click Continue. Enter Password and
Security Stamp ( answer to arithmetic sum) and Click Log In
3. Go to Returns Menu and select ITR For Employment Income
Only
4. Enter Return Period, select 'Yes' to the question 'Do you
have employment income?' and Click 'Next'
5. Under basic information, answer the questions asked
appropriately and Click 'Next'
6. 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.
7. 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.
8. Go to Section Q and capture a payment if any, made prior
to the filing of the return.
9. 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:
1. Type ‘iTax’ on your Google search tax and click on the
KRA iTax website www.itax.kra.go.ke
2. Enter your KRA PIN, click Continue. Enter Password and
Security Stamp ( answer to arithmetic sum) and Click Log In
3. 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’.
4. AFTER Log in, update the professions menu then return to
file NIL Return.
5. On the taxpayer PIN, insert your KRA pin and on the 'Tax
Obligation' option insert 'Income Tax resident.' then submit.
6. 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.
7. If the process is successful, an acknowledgement receipt
of e-returns will appear following a successful submission message.
8. 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:
1. Log on to from your browser www.itax.kra.go.ke
2. Enter your KRA PIN, click Continue. Enter Password and
Security Stamp ( answer to arithmetic sum) and Click Log In
3. Under the returns section, click on file returns then
select income Tax followed by the PAYE option.
4. Click on the returns tabs and then the last item ITR for
employment income
5. Fill in the sections marked with a red asterisk on
Section A.
6. Then in section T only two sections are necessary section
1.1 and 2.5
7. Then Move to Section F fill out Total Employment Income.
8. 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.
9. 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.
10. If successful you will get a tab saying, “return slip
generated’. You can click on the download returns slip to get
your slip.
It's that simple!
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.
REMEMBER: 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.