Kenyans will have to go through the necessary 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 normally penalized Ksh2,000, or 5% of the tax due, while corporates are charged Ksh20,000, or 5% of the tax due, for late filing of income tax.
Do you wish to avoid a fine of Ksh2,000? The following is a step-by-step guide to filing tax returns.
PAYE (Pay As You Earn) Returns Can Be Filed Online
1. Go to the official site of the KRA portal in your browser.
2. Click Continue after entering your KRA PIN. Click Login after entering your password and security stamp (answering arithmetic questions).
3. Select ITR (Income Tax Returns) For Employment Income Only from the Returns menu.
4. Select ‘Yes’ to the question ‘Do you have employment income?’ and enter the Return Period. and then press the ‘Next’ button.
5. Click ‘Next’ after answering the questions in the basic information section.
6. Go to Section F, Employment Income Details, and double-check the employer’s name and PIN, as well as the gross pay and other allowances listed on your P9 form.
7. Go to Sheet M and double-check the PAYE deducted details, as well as the Employer details, taxable salary, chargeable pay, tax payable on taxable salary, and PAYE deducted. Details can be changed according to your P9.
8. Go to Section Q and record any payments made before the return was filed.
9. Select Section T, Tax Calculation, from the drop-down menu. Enter the amount of defined/pension contribution (as per your P9 actual employee contribution) and personal relief. After clicking Submit, you will be able to download the E-return acknowledgment receipt.
How to File Nil Returns Online
To file nil returns, all you need is your copy of the KRA PIN certificate and an account on KRA’s iTax website.
1. First, click on www.itax.kra.go.ke and log in.
2. Key in your user Identification Card or KRA Pin. After you insert the KRA Pin, click on the continue button below it.
3. An empty tab will appear where you will input your password and then proceed to do simple arithmetic for verification purposes and click enter.
4. Once you have accessed the website, you will see a red menu bar. On it click the ‘Returns’ icon and a drop-down will appear; select the File Nil Returns Option.
5. On the new page, at the ‘Type’ tab, fill ‘self’, on the taxpayer pin insert your KRA pin and on the ‘Tax Obligation’ option insert ‘Income tax resident.’ then click ‘Submit.
6. Once the process is successful, an e-return acknowledgment receipt will appear. Click the download button in order to have the document in soft copy form
