Kenyans will have to go through the mandatory annual process as the deadline for filing tax returns approaches, and those who fail to do so will be held responsible.
According to the Kenya Revenue Authority (KRA), taxpayers who file their tax returns after the deadline of Thursday, June 30 are usually charged Ksh2,000 or 5% of the tax due, while the penalty for late filing of income tax for corporations is Ksh20,000 or 5% of the tax due.
Do you want to avoid paying the Ksh2,000 fine? Here is a step-by-step guide to filing tax returns.
Filing PAYE (Pay As You Earn) Returns Online
- Launch your browser and navigate to the official site of the KRA portal.
- Enter your KRA PIN and press the Continue button. Enter your password and security stamp (answer arithmetic questions) and then click the login button.
- Select ITR (Income Tax Returns) For Employment Income Only from the Returns Menu.
- Enter the Return Period and check the box next to ‘Do you have employment income?’ and then click ‘Next.’
- Under basic information, appropriately answer the questions and click ‘Next.’
- Go to Section F, Employment Income Details, and confirm the employer’s name and PIN, Gross Pay, and other allowances as listed on your P9 form.
- Go to Sheet M and confirm the details of PAYE deducted, taxable salary, chargeable pay, tax payable on taxable salary, and PAYE deducted. Details can be changed to suit your P9.
- Go to Section Q and record any payments made prior to filing the return.
- Navigate to Section T, Tax Calculation. Enter the defined/pension contribution amount (as per your P9 actual employee contribution) and personal relief. Submit the form to download the E-return acknowledgement receipt.
Online Filing of Nil Returns
All you need to file nil returns is a copy of your KRA PIN certificate and an account on the KRA’s iTax website.
- First, go to www.itax.kra.go.ke and sign in.
- Enter your KRA Pin or User Identification Card. After inserting the KRA Pin, click the continue button to the right of it.
- An empty tab will appear where you can enter your password and then do simple arithmetic for verification before clicking enter.
- After you’ve accessed the website, you’ll notice a red menu bar. On it, click the ‘Returns’ icon to bring up a drop-down menu; select the File Nil Returns option.
- On the new page, fill in’self’ in the ‘Type’ tab, your KRA pin in the ‘Taxpayer Pin’ field, and ‘Income Tax Resident’ in the ‘Tax Obligation’ field, then click ‘Submit.’
- When the process is completed successfully, an e-return acknowledgement receipt will be displayed.
- To obtain a soft copy of the document, click the download button.