Kenya Revenue Authority requires all Kenyan citizens who have KRA Personal Identification Numbers (PIN) to file for tax returns. This is regardless of the employment status or whether the individual has an income generating source or not. Those in employment are required to file for PAYE returns while students or unemployed citizens are required to file for Nil returns. To ensure this is adhered to, KRA normally imposes heavy penalties to those who fail to meet the specified deadline. The period for filing tax returns for the previous year, commences from 1st January and runs to 30th June.
How to file for KRA PAYE returns
Individuals who are employed, are required to file for PAYE returns on annual basis.
Requirements for filing KRA PAYE returns
Employed people will need a P9 form from their respective employers and if in self-employment, then a profit and loss statement is required. You will require the following documents to file PAYE returns in Kenya.
- P9 Form from your employer
- Your employer’s KRA PIN
- Financial statements from other incomes, for instance; rental income, business income, farming income, etc.
- Withholding tax certificates (W44) where applicable
- Mortgage Interest Certificate and PIN of the lender
- Insurance Premium Certificate and PIN of the underwriter
- Any other documents relating to income you received or deductions you want to claim
Procedure for filing KRA PAYE returns
To file for KRA PAYE returns on iTax follow this procedure.
- Log into your iTax portal using your KRA PIN number and password
- On the top panel menu, click on the ‘Returns’ tab and select ‘File Return’
- Select ‘Income Tax- Resident Individual’ under the Tax Obligation dialog box. Click ‘Next’
- Download an excel sheet titled ‘IT1 Resident Individual Form’ and carefully fill the required items. Most of the information requires is contained in the P9 form. When satisfied, go to the last past and click on ‘Validate’. If successful, it will be zipped (.zip) and saved on your computer
- Return to the KRA iTax website and select the period you are filing for, normally it’s 1st January to 31st December of the previous year, unless it’s an Amended Return
- Upload the zipped file, agree to the terms and select ‘Submit’
- You will be prompted to confirm if you would like to upload the file, click on ‘OK’
- If the submission is successful, a returns receipt will be generated with an acknowledgement number. You can download and print it for your records
How to file for KRA nil returns
Nil returns are filed by unemployed people without an alternative source of income like; rental, business or consultancy, but have a valid KRA PIN. All you need to file a nil return is your KRA PIN number and itax password. To file for KRA nil returns on iTax follow this procedure.
- Log into your iTax portal using your KRA PIN number and password
- On the top panel menu, click on the ‘Returns’ tab and select ‘File Nil Return’
- Select ‘Self’ on the type section, it will populate your KRA PIN number and Income Tax Resident in the Tax Obligation. Click ‘Next’ to proceed
- Select the period you are filing the returns for. Normally that would be from 1st January to 31st December of the previous year. Once done, click on the ‘Submit’ button to proceed
- If the submission is successful, a returns receipt will be generated with an acknowledgement number. You can download and print it for your records
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Any penalties for an amended tax return?