Filing your Kenyan tax returns with the Kenya Revenue Authority (KRA) through the iTax platform may initially seem complex, but it’s a manageable process that you can easily complete from the comfort of your home. This comprehensive guide will take you through the steps for filing individual income tax returns, nil returns, and PAYE (Pay As You Earn) returns on iTax.
Before You Begin
1. Gather Your Information: Make sure you have your KRA PIN (Kenya Revenue Authority Personal Identification Number), P9 form (provided by your employer with your income details), and any other relevant documents readily available.
2. Access the KRA iTax Portal: Visit the official KRA website at https://www.kra.go.ke/ and navigate to the iTax portal.
Filing Individual Income Tax Returns with iTax
1. Log In: Enter your KRA PIN, password, and the security stamp displayed on the login page. Click “Log In.”
2. Navigate to Returns: Once logged in, find the “Returns” menu and select “ITR for Employment Income Only” if your income solely comes from employment.
3. Return Period: Specify the tax return period for which you’re filing.
4. Employment Income Confirmation: Confirm “Yes” to the prompt about having employment income and proceed.
5. Basic Information: Provide accurate answers to the questions in the “Basic Information” section.
6. Employment Income Details (Section F): Verify your employer’s name and PIN, gross pay, and allowances as reflected on your P9 form.
7. PAYE Details (Sheet M): Confirm employer information, taxable salary, chargeable pay, tax payable on taxable salary, and PAYE deducted. Adjust details based on your P9 if necessary.
8. Payments Before Filing (Section Q): Include any tax payments made before filing your return (optional).
9. Tax Computation (Section T): Enter your defined/pension contribution amount (as per your P9) and personal relief.
10. Submission and Receipt: Click “Submit” and download the e-return acknowledgment receipt for your records.
Filing Nil Returns:
1. Log In to iTax: Follow the login steps mentioned above.
2. Access e-Returns: Navigate to the “e-Returns” section and select “File Nil Returns.”
3. Update Profession: Update your profession information before proceeding with the nil return filing.
4. Taxpayer Information: Enter your KRA PIN and select “Income Tax Resident” under the “Tax Obligation” option. Click “Submit.”
5. Return Period: Fill in the “Return Period From” and “Return Period To” dates according to the filing timeframe. Click “Submit” again.
6. Confirmation and Receipt: Upon successful submission, download the e-returns acknowledgment receipt for your records.
Filing PAYE Returns
1. Log In to iTax: Follow the login steps mentioned previously.
2. Navigate to Returns: Find the “Returns” section and click on “File Returns.”
3. Income Tax and PAYE Selection: Select “Income Tax” followed by the “PAYE” option.
4. ITR for Employment Income: Choose “ITR for Employment Income” from the “Returns Tabs.”
5. Complete Sections: Fill out the required sections marked with a red asterisk in “Section A” and “Section T.”
6. Employment Income (Section F): Enter your total employment income.
7. PAYE Verification (Section M): Ensure the information matches your P9 form.
8. Tax Paid in Advance (Section Q): Fill in any tax paid in advance (if applicable).
9. Return Submission: Click “Submit” once all sections are complete.
10. Download Return Slip: Upon successful submission, download the return slip for your records.
Additional Tips
Resetting Your Password: If you forget your KRA PIN or password, use the “Forgot Password/Unlock Account” option to reset your credentials.
Filing Deadline: Remember, the deadline for filing tax returns in Kenya is June 30th each year. Failing to file on time attracts a penalty of Ksh 2,000.
By following these steps, you’ll be able to navigate the iTax platform efficiently and complete your tax returns accurately and on time.