Latest Update on How to file KRA returns online

The iTax online platform has significantly simplified taxpayers’ lives by facilitating the fulfillment of various tax obligations. Filing tax returns through iTax has become straightforward and more accessible. In Kenya, all registered taxpayers holding a Personal Identification Number (PIN) issued by the Kenya Revenue Authority (KRA) are required to submit tax returns annually. Individuals without business ventures or gainful employment are obligated to file nil KRA tax returns.

Introduction

The iTax filing system is structured to accommodate different types of KRA returns, including income tax for resident individuals, corporations, partnerships, and indirect taxes such as VAT and excise. Depending on your tax obligations, selecting the appropriate type of iTax return is essential for filing accurately.

For further information on the various types of KRA tax returns that can be filed through the iTax online portal.

In this article, we will delve into the process of filing KRA returns online, or iTax filing.

How to File KRA Returns Online

The Kenya Revenue Authority (KRA) mandates all registered taxpayers with a KRA PIN to file their returns annually. Non-resident individuals employed by a Kenyan entity or operating a permanent establishment in Kenya are subject to income tax rates and must fulfill their filing obligations accordingly.

Contrary to popular belief, filing returns is not overly complex. Here’s a straightforward guide on how to file KRA returns, whether for employment income or nil returns.

What do you Need to File KRA Returns Successfully?

To file your KRA returns successfully, you’ll need three critical requirements:

• KRA PIN
• iTax login credentials
• Internet access to navigate the KRA’s website or the iTax mobile app and access your email.

Step-by-Step Procedure

1. Visit KRA’s Website

• Access the official KRA website to find the iTax portal.

1. Login

• Enter your PIN or user ID to log in.
• Fill in your KRA PIN and password, and solve the security stamp.

1. Visit the Return Menu

• Once logged in, visit the return menu on the portal.
• Select “Individual Tax Return (ITR) only.”
• Fill in mandatory details and select “Yes” to “Do you have employment income?”
• Click “Next” to proceed.

1. Fill in Required Parts

• Fill out sections marked with an (*) and answer questions appropriately.
• Start with “Basic Information” and proceed through other sections, such as “Details of Employment,” “Details of PAYE Deducted at Source from Salary,” “Details of Income Paid in Advance,” and “Tax Computation.”
• Check and counter-check details against your P9 form.

1. Submission

• After completing all sections up to “Section T,” click the “Submit” button.
• Confirm submission and receive the notification “Return Receipt Generated,” indicating successful submission.

1. Download KRA Returns Receipt

• Download the return receipt from the provided link.
• Receive an email confirmation of successful submissions for the financial year.

How to File KRA Returns

The Kenya Revenue Authority (KRA) mandates all registered taxpayers with a KRA PIN to file their returns annually. Non-resident individuals working in Kenya are subject to income tax rates and must fulfill their filing obligations accordingly.

Filing KRA returns, whether for employment income or nil returns, is straightforward. Here’s a comprehensive guide:

Filing KRA Returns Successfully

To file your returns online successfully, you’ll need three critical requirements:

• KRA PIN
• iTax login credentials
• Internet access to navigate the KRA’s website or the iTax mobile app and access your email.

Step-by-Step Procedure for Employment Income Returns

1. Visit KRA’s Website

• Access the official KRA website to find the iTax portal.

1. Log In

• Enter your PIN or user ID to log in.
• Fill in your KRA PIN and password, and solve the security stamp.

1. Visit the Return Menu

• Once logged in, visit the return menu on the portal.
• Select “Individual Tax Return (ITR) only.”
• Fill in mandatory details and select “Yes” to “Do you have employment income?”
• Click “Next” to proceed.

1. Fill in Required Parts

• Fill out sections marked with an (*) and answer questions appropriately.
• Proceed through sections such as “Basic Information,” “Details of Employment,” “Details of PAYE Deducted at Source from Salary,” “Details of Income Paid in Advance,” and “Tax Computation.”
• Check and counter-check details against your P9 form.

1. Submission

• After completing all sections up to “Section T,” click the “Submit” button.
• Confirm submission and receive the notification “Return Receipt Generated,” indicating successful submission.

1. Download KRA Returns Receipt

• Download the return receipt from the provided link.
• Receive an email confirmation of successful submissions for the financial year.

Step-by-Step Procedure for NIL Returns

1. Visit KRA’s Website

• Access the KRA portal through their website or mobile app.

1. Log In

• Enter your PIN/User ID and password to log in.

1. Visit Return Menu

• Click and select “File Nil Returns.”

1. Select Tax Obligation

• Choose the tax obligation type, e.g., individual.
• Confirm the pre-filled “Type and Taxpayer PIN.”
• Click “Next.”

1. Fill out Nil e-Return Form

• Enter “Return Period From” and “Return Period To.”
• Submit and confirm “Yes” to submit a NIL return.

1. Download Returns Receipt

• After submission, receive a confirmation with an acknowledgement number.
• Download the NIL return receipt.

Penalty for Not Filing KRA Returns

Failure to file or late filing of returns attracts penalties and interest as outlined by KRA. Individual taxpayers face a penalty of Ksh. 2,000 or 5% of the tax due, while non-individuals face a fine of Ksh. 20,000 or 5% of the tax owing.

FAQ: Filing KRA Returns

1. Who is required to file KRA returns?

• All registered taxpayers with a KRA PIN, including non-resident individuals working in Kenya, must file their returns annually.

2. What are the essential requirements for filing returns successfully?

• To file KRA returns successfully, you need:
  • KRA PIN
  • iTax login credentials
  • Internet access to navigate the KRA’s website or the iTax mobile app and access your email.

3. How can I file KRA returns for employment income?

• You can file returns for employment income by following these steps:
  1. Log in to your iTax account on the KRA website.
  2. Visit the return menu and select “Individual Tax Return (ITR) only.”
  3. Fill in mandatory details and proceed through the sections, including “Basic Information,” “Details of Employment,” and “Tax Computation.”
  4. Submit your returns and download the receipt.

4. What is the process for filing NIL KRA returns?

• If you’re registered with KRA but not earning employment income, follow these steps:
  1. Log in to your iTax account.
  2. Select “File Nil Returns” from the return menu.
  3. Choose the tax obligation type and confirm your details.
  4. Fill out the Nil e-Return form and submit it.
  5. Download the NIL return receipt.

5. What are the penalties for not filing KRA returns?

• Failure to file or late filing of returns can result in penalties and interest. Individual taxpayers may face a penalty of Ksh. 2,000, or 5% of the tax due, while non-individuals could be fined Ksh. 20,000, or 5% of the tax owed.

6. How can Workpay assist with tax compliance and payroll processing?

• Workpay offers solutions for employers struggling with tax compliance issues and payroll processing. They provide reliable services to ensure smooth operations and compliance with KRA requirements.

Final Thoughts

Filing tax returns is crucial to avoid penalties and interest. The process is simple and can be done online. For employers seeking assistance with tax compliance and payroll processing, Workpay offers reliable solutions.

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