In Kenya, the Kenya Revenue Authority (KRA) requires all registered taxpayers with a KRA (Personal Identification Number) PIN to file their returns annually. The deadline to file income tax returns is 30th of June. This guide will explain how to file KRA returns, specifically, income tax for individuals. You can all read on filing nil returns here. We also discuss the penalties due to late filing and highlights the importance of filing on time.
What is Need to File Tax Returns
- KRA PIN
- iTax profile login credentials
- Internet access (website or mobile app)
Processing of Filing your KRA Tax Returns Online
Start by vising the iTax Portal or use the iTax mobile app.
- Log In: Enter your KRA PIN and password. If you forget your password, click “Forgot Password” to retrieve it via email.
- Navigate to Returns Menu: Once logged in, go to the “Returns” menu and select “Individual Tax Return (ITR) only.” Choose “Yes” for “Do you have employment income?” and click “Next.”
- Fill Out Sections: Fill in the required details in sections A to T. The system will pre-fill some sections based on your employment information (P9 form). Double-check and update any discrepancies.
- Basic Information will ask you for different information such as mortgage, car provided by an employer, insurance policy etc.
- When using a P9 the “Details of Employment” is prefilled by the system, hence, you work here is to confirm accuracy.
- “Details of PAYE Deducted at Source from Salary” at section M is also filled by the system. Confirm accuracy and click next.
- Under the “Details of Income Paid in Advance” you fill the payment details only if you made any payments this year. If you have not, skip this section.
- Section T: “Tax Computation” is the final section. Click “Next” to access it. While the system has prefilled the section, you might need to add some information manually. Look at your P9 form for details like “Defined Pension Contribution” and “Personal Relief” and enter them if required
- Submit: After completing all sections, click “Submit” and confirm to submit the data. You’ll receive a notification confirming successful submission.
- Download Receipt: Download your return receipt for reference. You’ll also receive an email confirmation.
Read: How to File Nil Returns Online
Penalties for Late Filing
Late filing of KRA returns attracts penalties and interest for individuals, businesses, firms, and companies. Individuals face a penalty of Ksh. 2,000 or 5% of the tax due, while non-individuals can be fined KES. 20,000 or 5% of the tax owed. KRA’s website’s “Offences and Penalties” section has a complete list of penalties associated with various tax return filing violations.
Once you have filed your returns successfully, you can apply for A Tax Compliance Certificate. This certificate is proof of having filed and paid your taxes and may be required in certain occasions. You can request for a tax compliance certificate on iTax.
