The iTax online platform has facilitated the lives of taxpayers in meeting various tax-based duties.
In Kenya, every registered taxpayer with a Personal Identification Number (PIN) obtained from the Kenya Revenue Authority (KRA) must file tax returns every financial year.
Those who have no business or are not in gainful employment must file nil KRA tax returns.
Based on your tax obligation, you need to choose the right type of iTax returns and file. The iTax filing system is designed to accept the various type of KRA returns as follows:
Types of KRA returns
- KRA iTax return forms for Resident Individuals – Income Tax
- KRA iTax Return Forms for Non-Resident Individuals—Income Tax
- KRA iTax return forms for companies: Income Tax
- KRA iTax return forms for Partnership – Income Tax
- KRA iTax return forms for PAYE – Income Tax
- KRA iTax return forms for – Turnover Tax – Income Tax
- KRA iTax return forms for Value Added Tax (VAT)
- KRA iTax return forms for Excise
Let us explain each of the above-mentioned KRA return forms.
KRA iTax return forms for Resident Individual
This KRA tax return applies to all the resident individuals who are taxed on the whole income earned in respect of any employment or services rendered in Kenya or outside Kenya.
This includes any other income that has accrued in or derived from Kenya.
To file returns, the resident individual needs to choose ‘Income Tax – Resident Individual’ from the KRA tax return types in the iTax online portal.
KRA iTax return forms for Non-Resident Individual
For non-resident taxpayers, the income earned within Kenya or derived from Kenya is taxable.
A Non-Resident Individual needs to select ‘Income Tax – Non-Resident Individual’ from the KRA tax return types in KTA online returns.’
KRA iTax return forms for Companies
The type of income tax levied on corporate bodies is known as a “corporate tax.”
This will be levied on corporates such as limited companies, trusts, and co-operatives.
Resident companies are taxable at the rate of 30% while non-resident companies are taxable at the rate of 37.5% on their taxable profits.
To file the returns in the KRA iTax Online portal, these companies need to select ‘Income Tax – Company’ in the type of KRA tax returns.
KRA iTax return forms for Partnership
Partnership income is not taxable for income tax purposes.
This is because the share of partnership income is taxable in the hands of the partner at the prevailing individual income tax rates.
The income is not taxable at the entity level, preferably, it is taxed in the hands of individual partners.
Though the income is not taxed at the entity level but as a partnership firm, you need to file a separate partnership return.
To file a partnership return, you need to select’ Income Tax – Partnership’ in the KRA iTAX return menu.
KRA iTax return forms for PAYE
PAYE stands for ‘Pay as You Earn’. It is a method of tax deduction by the employer on employee’s salaries or wages and applies to all income from any office or employment.
It applies to weekly wages, monthly salaries, annual salaries, bonuses, commissions…etc.
The tax deducted should be paid every month, and the employer needs to file a return disclosing the details of the tax deducted.
To file iTax PAYE returns, you need to select the ‘Income tax – PAYE’ in the types of KRA iTax returns.
KRA iTax return forms for filing turnover tax
To provide simpler compliance for small businesses, the government has launched a tax scheme known as “Turnover Tax.”
This applies to businesses that generate an income of between KSh 500,000 and 5,000,000.
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The businesses opting for turnover tax need to pay tax at a fixed rate on gross income earned by them.
Paying tax under the turnover tax scheme, you need to select ‘Income Tax – Turnover Tax’ in the KRA tax return menu to file your iTax returns online.
KRA iTax return forms for filing VAT returns
All businesses with a KSH of 5,000,000 or more in the last 12 months or anticipating attaining KSH 5,000,000 are mandated to register under VAT.
The Act also offers voluntary registration where a taxpayer chooses to register despite the turnover falling below Kshs.5,000,000.
VAT Registered businesses must declare the details, such as VAT charged on sales, VAT paid on purchases, etc. by filing monthly VAT returns by the 20th of the succeeding month.
To file a VAT return in Kenya, you need to select ‘VAT Returns’ in the iTax tax return menu.
KRA iTax return forms for filing Excise returns
An excise duty is imposed on notified goods manufactured or imported into the country. Different excise duty rates depend on the product being imported or manufactured.
The details of excise duty levied should be declared in the monthly excise return before the 20th of the subsequent month.
To file an iTax excise return, you need to select ‘Excise’ in the KRA tax return type.
How to file KRA iTax returns online?
The steps to filing KRA returns is relatively common for all type of returns, be it your income tax for an individual, income tax for corporates or filing VAT returns.
The only different thing is the details which you need to furnish and the format for submitting.
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For instance, the type of details and format for filing KRA returns for income will be different from filing VAT returns but the steps to file returns will be more or less similar.
The following are the steps for filing KRA returns.
- Visit the iTax filing portal using https://itax.kra.go.ke/KRA-Portal/
- Login to the iTAX portal with PIN and password.
- Click on ‘e-Returns’ or select ‘Returns’ from the navigation menu and click on ‘File Returns’.
- Select the Type, Enter your taxpayer’s PIN and selects the Tax obligation applicable to you, and click ‘Next’.
- Based on the tax obligation you have selected, it opens the relevant tax form. For example, if you have selected ‘VAT’ as your tax obligation, it will open the VAT return form.
- This page will take you through the filling process and will have detailed instructions to file tax returns.
- The instruction will also have links to download the tax returns form in Excel or ODS format. Click the relevant link to download the template and save it on your computer.
- Fill in all applicable areas in the downloaded tax returns form and save your document on your computer.
- Make sure you enable macros to be able to ‘Validate’ and Zip your File.
- Go to the iTax tax return filing page and select the period for which you are filing the returns.
- Upload the zip file and agree to the terms and conditions by ticking the checkbox.
- Finally, click the ‘Submit’ button to upload the returns and click ‘OK’ for the pop-up message ‘Do you want to upload the form’
On filing KRA Returns, an e-return receipt will be generated with the message return submitted successfully along with the acknowledgment number.