Filing of tax returns is a lawful obligation of every citizen with a pin number.
The annual process, according to Kenya Revenue Authority (KRA), should be undertaken by every taxpayer between January 1 and June 30.
Since KRA offloaded these service to its online based platform iTax, declaration of returns has been simplified and any citizen can perform it from anywhere.
For one to be able to file income returns, one needs the following things:
a. A phone or computer with active internet connection
b. KRA PIN (yours and that of your employer)
c. Acquire a P9 form from your employer which will proved the following requirements:
- Gross Salary – Annual
- Pension Amount – Annual
- Chargeable pay – annual
- Tax charged – Annual
- PAYE – Annual
- Tax Relief – Annual
With the new iTax system, one can file returns without the P9 form, as long as their employer was loyal at remitting PAYE.
Steps to follow.
1. Open your internet browser and log in on iTax
2. The site will open up and provide you and option to enter your KRA PIN, then password and an answer to an arithmetic operation.
If you have forgotten your password, no need to panic. The portal allows you to recover it and thereafter set a new one via the password reset button.
3. After login in, a newly introduced feature will require you to update your professional details.
4. After updating professional details, a taxpayer is needed to download a form that will enable them declare returns.
a. Click at Returns option (a menu will appear)
b. On the menu, select ITR For Employment income only
Non-residents employees filing returns should click ITNR For Employment Income Only.
c. An interactive menu will appear where you will enter the Return Period From and Return Period To dates.
d. Select Yes for the question that asks on whether you have Employment Income, the press Next.
e. After this, a basic sheet with your employment income will appear; fill it as required.
Note – If you get an error message, go back to the Returns menu and and select File Return
- At the Tax Obligation, select Income Tax Residential Individual, then click next
- Another page will open and it will direct the user to click a link to download the form
- A zip file containing an Excel document will be downloaded and the taxpayer will be required to open then extract it (by right clicking) for it to be opened.
Ensure macros is activated on MS Excel to enable you populate the document
- Using information provided on your P9 form, fill the Excel document promptly
- After filling, validate the information (this helps to check on any errors)
- Close the document then upload it on iTax using the upload option provided
- A receipt will be able to be downloaded after completion of this process
f. The details to be filed (in e above) range from section A, F, M Q and T. They should be entered as they appear in you P9 form.
g. After confirming that every detail provided reflects your P9 form, submit you details and you will be able to download your returns receipt that will be auto-generated.
Note – If you have other benefits or relief relating to employment income like a car provided by employer, mortgage relief for owner occupied house (not a house you have rented out), home ownership savings plan, insurance relief or exception certificate for disability you will select where applicable in Section K. Remember to click Add after filling every section.
- Section I – This provides for car benefits which will be filled using accurate information about the vehicle
- Section J – Mortgage detail are to be filled here. This information will be source from a certificate from your lender.
- Section K – You will need a certificate from the financial institution. This will enable you fill this sheet which is branded as HOSP.
- Section L – Here, a taxpayer will fill information on Insurance Relief. One must obtain a certificate from his/her insurance company.
- Section T – Fill the form here and ensure it reflects what is on your P9 benefit.
After entering all this, cross check and ensure all details are matching with your P9 form, submit the form and download the receipt.
Paying Due Taxes if any
If there is any Tax Due to Pay, go to Payments menu and select Payment Registration.
At Tax head select Income Tax while at Tax Sub Head select Income Tax Resident.
Payment Type should be Self Assessment then fill in the tax period. Click Add.
Select the preferred mode of payment and submit. From here you will be able to download the receipt.
You can then make a Payment at a partner bank of your choice or send via mobile money.
How to file nil returns?
As earlier discussed, there are about six groups of individuals who have the option of filing nil tax returns.
Any student who acquired for a PIN for purposes of applying for a HELB loan or on any other student assistance but did not engage in employment, business or any other income generating activity.
These are people who have been in employment before and were filing and paying taxes but lost their jobs/were retrenched and were not employed elsewhere in 2018 or did not have any other income.
3. Former business owners
This applies if the business was dissolved prior to January 2018 and is no longer operational. The directors should, however, consider applying for PIN dormancy or deactivation.
If you are retired and have no other source of income other than your pension and said pension is less than KSh 25,000 per month or KSh 300,000 per annum.
5. If your monthly salary is below the minimum wage of KSh 13,486.
6. If the withholding tax on your income was final e.g. taxes from gaming and lotteries.
1. Login to iTax
On the left-hand side, you will see an empty tab, enter your KRA Pin number then click on continue.
2. Enter your password and key in the answer to the Security Stamp Question
In case you don’t remember your password, just click on forgot password located at the bottom right of the page and follow prompts to set a new password.
3. Once Logged in, Update your professional details.
4. Click on the ‘Returns’ icon and a drop-down menu will appear; select the File Nil Returns option.
You will be required to fill in some information
4. At the Self Taxpayer Pin, enter Your Pin
Tax Obligation select Income Tax Resident
Click on next.
5. Select Income tax to be Resident Individual nil E-return
6. You will be redirected to a new page where you will have to key in your KRA Personal Identification Number, Wife Pin (leave it blank if you’re not married).
7. Selects the Return period dates which in this case in 2018 will be 01/01/2018 to 31/12/2018 (this is automated, once you click on the small calendar on your right).
8. Press the submit button after you are done filling the above information.
If the submission is successful, an e return acknowledgment receipt from KRA will be generated on the platform.
9. Click on download Return Receipt, and you can view it.
10. The above procedure takes just a few minutes to complete provided that you have a stable internet connection.
Filing of returns is set to close on Sunday, June 30, 2019.
It is advisable to undertake the process before rush hour to avoid being a victim of delays and inconveniences.
Kenyans can also visit KRA offices or Huduma Centers to be assisted in filing returns.