This step by step guide covers a step by step guide on how to file KRA itax Returns.
Kenyan are required to pay their taxes within the allocated period or face charges for tax evasion.
Most Kenyan citizens were paying penalties due to late payments.
Previously, KRA tax returns were filed physically at the Kenya Revenue Authority offices. However, the institution can only do too much when hoards of people throng their offices from early morning until closing hours every single day of the month. On the other hand, you can pay penalties through MPESA.
The introduction of the Integrated Tax Management System popularly known as ITMS made is easy for Kenyan citizens to acquire their PINs from KRA. Another innovation, the TWS Taxpayer Software, made it easier to file VAT returns.
While these innovations played their part in ensuring KRA maintains building taxpayers trust through facilitation for enhanced tax compliance, they were eliminated and replaced by the iTax system. iTax enables ever Kenyan citizen of legal age to file KRA tax returns online with ease and efficiency. This innovation was introduced to Kenyans by KRA on March 1st, 2014 and can be accessed on KRA’s official website. Apart from filing returns, you can also follow through on your payments using iTax and access your data at any time from any location in or outside the country.
You can now file KRA income tax returns online from the comfort of your couch or your office. KRA tax returns deadline for 2018 The KRA tax returns deadline for 2018 varies from the type of tax one is expected to pay. For instance, the KRA income tax returns deadline 2018 varies depending on the income tax being paid. For Pay As You Earn (PAYE), all returns should be filed by the 28th of February at the end of every calendar year. However, the pay-in-slips or P11’s as they are often termed are sent to designated payment points such as commercial banks every month. Individual returns or IT1 should be filed by June 30th for the previous calendar year while company and partnership returns or IT2C’s and IT2P’s respectively should be filed by June 30th following the closure of the business accounting period. As for VAT returns, these should be paid before the 20th of every month after the period of deduction.
For payment, you can find VAT 3 forms at select commercial banks while nil and credit returns are sent to the DTD offices. VAT withholding returns are sent in the same manner as their counterparts above, but these should be filed on a weekly basis.
Payment of taxes might be different from the filing procedure, but KRA has due dates for disbursements to ensure efficiency. Withholding tax should be paid every Monday while installment tax should be cleared by the 20th of every 4th, 9th, and 12th month during the accounting period of the current income year.
VAT remittances and excise duty should also be cleared by the 20th of every month. KRA also issued a public notice informing all Kenyan citizens of the schedule and deadline for the filing of the 2017 income tax returns.
The statement from the commissioner for domestic taxes read, ‘Kenya Revenue Authority (KRA) wishes to remind all taxpayers that the tax returns for the year of Income 2017 are due for filing as from 1st January 2018 to 30th June 2018. The Taxpayers filing genuine NIL Income Tax Returns are at this moment notified that they can now successfully do so through the iTax system.
Taxpayers are further advised to observe timelines and accurate declarations in their returns besides making full payments of any taxes due.’ In case you haven’t exercised your legal duty, here is a guide on how to acquire KRA online tax returns forms and file your returns. How to file KRA tax returns Filing KRA tax returns online has been made simpler by KRA’s iTax system.
For KRA online tax returns, the first step entails logging in using your PIN and password. If you don’t have either of the two, visit the nearest KRA office for assistance with the same.
However, be sure to acquire these credentials fast to meet the KRA tax returns deadline, which is only a few weeks away. How to file tax returns online KRA Aside from your PIN and password, you should also have the following information before filing your tax returns on the KRA website.
Employer information (for the employed) Employer’s KRA PIN and P9 form. Financial statements Insurance Premium Certificate/Underwriter’s PIN/Mortgage Interest Certificate If required, be sure to have your withholding tax certificates nearby The necessary documents if you are submitting claims for deductions or the income sent to you The procedure below explains how to file KRA tax returns online and is accompanied by examples of how to file the various types of taxes mandated by the institution. Filing tax returns KRA online
You can now file KRA income tax returns by logging into iTax using this link. Once on the page, you are required to log in using your PIN and password then answer a security question. Failure to answer the question correctly prompts a repeat of the entire process. Once you are securely logged in, locate the navigation bar (at the top, in red) and click on e-returns.
A few options will be displayed but click in ‘file returns.’ The next page is the tax obligation area where you are required to select the tax you wish to pay before clicking the submit button. You will then be directed to a page with a link to downloading the KRA returns form, which is crucial for offline assessment.
The form is often either in ODS or Excel format and will easily open on most modern devices. Fill all the questions correctly, especially the mandatory ones before saving it on your device and returning to the iTax portal. The page you were on should request for additional details such as the period of your tax returns which should be as per the KRA guidelines. Upload the document in zip format back onto this page after counterchecking then agree on the KRA terms and conditions then press submit. If the process is completed successfully, iTax will generate an acknowledgment receipt. However, if it is unsuccessful, an error message will be displayed, and you might have to reload the page or repeat part of or the entire process. Thanks to iTax, the KRA file tax returns process encompasses different types of taxes.
This feature makes it easy for individuals and companies alike to file returns for self or companies respectively easily and conveniently. You can also file your PAYE and VAT tax returns through iTax in a process which is almost similar to the one above.
While filing tax returns, KRA ensures the cybersecurity of Kenyan citizens is ensured. Most Kenyan citizens, students or employed, acquired their KRA PIN through a cyber café.
Partnering with cyber cafes was a move to enhance efficiency according to Mr. Kennedy Onyonyi, the Senior Deputy Commissioner in charge of Marketing and Communication Department. As such, they are required to file their tax returns on the KRA website as per the stipulated dates.
Those with a KRA PIN but without a job are also required to file for nil returns. Filing for nil income taxes had been completely shut down by KRA in mid-February as iTax was receiving an upgrade but the system is now fully operational.
The KRA commissioner for domestic taxes Mr. Benson Korongo also warned those Kenyans falling in the nil category that the information they provide will be verified via their pin transactions.
The notice read, ‘Non-filers for cases of taxpayers with gainful economic activities are in contravention of the law.’ Regarding the recommencing of the file nil returns feature on iTax, the commissioner said, ‘The taxpayers filing genuine nil income tax returns are hereby notified that they can now successfully do so through the iTax system.
Taxpayers are further advised to observe timelines and accurate declarations in their returns besides making full payments of any taxes due.’ The penalty for not filing your tax returns is hefty after a 20 percent increase from Ksh 1,000 to Ksh.20,000 on May 9th, 2017.
To avoid long last-minute queues, here’s a guide on how to file nil tax returns on iTax. How to file tax returns KRA iTax (nil returns) For KRA filing tax returns is mandatory for any Kenyan citizen above the taxation bracket.
You can file i tax KRA returns for the nil category using the simple process below. Find the official KRA website then enter your PIN and password then answer the security question.
You will then be redirected to the iTax page. At the top of the website, there is a navigation pane with ‘Returns’ as one of its features. Click on it then scroll downwards until you see the ‘file nil return’ option.
Other options include filing for amended returns and the ETR supplier sales declaration. You will then be redirected to the tax obligation page where you should enter the type of taxation and tax obligation followed by your KRA PIN. iTax then issues a nil e-return form with a few mandatory questions which should be answered factually before clicking the submit button.
The step above completes the mission as al that is left is an acknowledgment receipt confirming your nil returns have been successfully filed. If the receipt doesn’t appear, the screen often displays an error message.
The process of filing KRA tax returns for PAYE and VAT is almost the same. The only difference is the category they both fall under the returns button on the iTax navigation bar. Normally, both VAT and PAYE returns are filed every month. Here’s a guide on how to file the two returns on iTax.
How to file PAYE and VAT on iTax Log into iTax using your PIN and password then answer the security question. Navigate to the returns section and select income tax PAYE or VAT the download the required spreadsheet from the options provided.
Fill in all the details required the save the document on your device where you access it easily then go back to the iTax page. Click file returns on the navigation bar and submit your PIN and tax obligation before pressing submit.
The next page required you to fill in information regarding your return period, which is monthly for both PAYE and VAT, then upload the saved document on your device to the iTax website. Agree to the highlighted terms and conditions at the bottom then click submit. Similar to the other processes discussed above, expect an acknowledgment receipt or an error message.
If it’s the former, then your VAT or PAYE returns have been successfully filed. The process of filing tax returns online KRA through iTax also encourages Kenyan citizens to apply for VAT registration seeing it’s essential to the entire procedure.
The KRA tax returns processing system is now revamped and contains almost all the information you might need in case you need additional clarification. Returns processing are enhanced once the taxpayers meet the due dates for filing returns and payments. Don’t like reading? Here is a video on how to file KRA iTax Returns