It now takes less than fifteen minutes to file your tax returns on the iTax System.
Kenyans in employment or running businesses have the option of filing their returns through the KRA web portal or at the KRA office branches countrywide.
Filing tax returns - presenting a statement of earnings from various sources of income, tax liability thereon, details of tax paid and any refunds that have to be given by the government - is a legal requirement and a breach of the law attracts heavy fines.
A lot of taxpayers deem filing tax returns is voluntary and therefore dismiss it as unnecessary and burdensome. As we will see, this is not a very healthy perspective on tax-filing.
Filing tax returns is an annual activity seen as a moral and social duty of every responsible citizen of the country. It is the basis for the government to determine the amount and means of expenditure of the citizens and provides a platform for the assesse to claim refund, among other forms of relief from time to time.
The government mandates that individuals who earn a specified amount of annual income must file a tax return by the end of the government’s financial year which is June 30.
The tax as calculated must be paid by the individual. Failure to pay tax will invite penalties from the Income Tax Department.
Those who earn less than the prescribed level of income can file returns voluntarily.
Filing returns is a sign that you are responsible. Not just that, it also makes it easier for individuals and businesses to enter into subsequent transactions since their income is recorded by the Kenya Revenue Authority with applicable tax, if any, having been paid.
An individual income tax return is a declaration of income earned by an individual within a particular year and everyone with a KRA pin is required to fill this return. With the new, easy to use system called iTax, the process is much less rigorous.
Filing Individual Tax Returns in Kenya
Employed persons require a P9 form that is provided by the employer. Individuals who are self-employed only require a profit and loss statement. Students and other people categorized as not in moneymaking occupation have to file a nil return if they have a KRA Pin.
• Get your account on the iTax System online, click on the Returns menu tab. A drop-down will pop up; go for the File Return alternative. If you don't have any sources of income or you are in school, then you should choose the alternative of File Nil Return.
• Click on the File returns option, you will be redirected to another page where you pick the option of Income Tax-Resident Individual, then click next.
• Download an excel sheet where you will input all suitable data needed to file your tax returns in Kenya. The alternatives which you opt for on the sheet of Basic Info will dictate the kind of information that you should provide.
• Once each and every detail needed has been filled on the excel sheet, go to the last excel sheet for a computation of all the data keyed in in the other sheets and indicates the total amount of tax that you owe KRA, if any. Click on validate.
• Once you fill all the essential information in the correct manner assuming that your excel file is error-free, it will be compressed into a zip folder which will be used to upload on iTax. It is essential to clearly specify whether the kind of return is an original or modified one. In addition, you have to specify the return interval that is always January to December of the year before the one you are filing. Afterwards, you tick the terms and conditions box and click submit option.
• After submitting your return, KRA will send you an acknowledgment number and an email confirmation stating that you have successfully filed your tax returns.
File your taxes today: https://itax.kra.go.ke/KRA-Portal/