Avoid Penalties: How To File Your KRA Tax Returns
Filing KRA tax returns is a crucial civic duty, ensuring the smooth functioning of the government and supporting public services. Filing your Kenya Revenue Authority (KRA) tax returns can be a daunting task, but it doesn’t have to be.
In this blog post, we’ll unravel the complexities and guide you through the process, ensuring you avoid penalties and stay on the right side of the taxman.
Remember that anyone with a KRA pin must file their tax returns.
Any unemployed citizen with no substantial income, including students, is required to file a ‘Nil Return.’
A KRA P9 Form will be required for all employees, both private and public sector, as part of the process.
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Noncompliance is punished by paying an additional tax equal to 5% of the tax due in the period.
Avoid Penalties: How To File Your KRA Tax Returns
Filing your KRA tax returns doesn’t have to be a daunting task. Follow these step-by-step instructions to navigate the process seamlessly:
Access the iTax Portal:
- Visit the KRA iTax portal at https://itax.kra.go.ke.
- Log in with your KRA PIN and password. If you’re a first-time user, you’ll need to create an account.
Select the Appropriate Tax Obligation:
- On the iTax dashboard, select the tax obligation you are filing for. This could be Income Tax Resident, Non-Resident, or any other relevant category.
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Download Excel or Online Form:
- Download the appropriate tax return form. KRA provides both Excel and Online forms for different tax obligations.
Fill in the Required Information:
- Complete the form with accurate information. This includes personal details, income details, deductions, and any other relevant information based on your tax obligation.
Validate the Form:
- Use the validation feature to check for errors or missing information. This ensures that your form is error-free before submission.
Generate a Payment Slip:
- After successfully filling the form, generate a payment slip. This will detail the amount you need to pay, if applicable.
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Make Payment:
- Pay the calculated amount through the provided payment options (M-Pesa, bank deposit, etc.).
Submit the Return:
- Once payment is made, submit the return electronically through the iTax portal.
Download Acknowledgment Receipt:
- After submission, download the acknowledgment receipt. This serves as proof of filing.
Keep Records:
- Maintain a copy of all documents, including the acknowledgment receipt and payment confirmation. These are essential for reference and auditing purposes.
Seek professional advice (optional):
- If you have complex financial situations or are unsure about certain aspects, consider seeking advice from tax professionals to ensure accuracy.
Remember, filing your KRA tax returns on time is not only a legal obligation but also contributes to the smooth operation of government services. Following these steps ensures a hassle-free process and helps you avoid penalties.
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Here is the procedure for those who are unemployed.
- Go to the KRA iTax Portal.
- Enter your KRA PIN here.
- Enter your KRA iTax password and answer the arithmetic question (Security Stamp)
- The iTax Account Dashboard is then displayed.
- Following the display, click the ‘Returns tab,’ which brings up a drop-down box.
- Select the ‘File Nil Return’ option from the drop-down menu list.
- Choose No e-Return Tax Obligation.
- Fill out the Form Income Tax Resident Individual Nil e-Return.
- Finally, you download the KRA Returns Receipt to view your information.
Avoid Penalties: How To File Your KRA Tax Returns
