One of the most important obligations as a Kenyan citizen is to register and identify yourself with the Kenya Revenue Authorities system. Also, learning how to file KRA returns for employees is consequently significant. Luckily, thanks to technological advancements, KRA has provided the iTax platform, allowing people to file tax returns conveniently and efficiently.
The Kenya Revenue Authority (KRA), also known as the Kenyan taxman, requires every registered taxpayer with a KRA pin to file their returns every financial year. Non-Kenyan residents working as Kenyan employees or with permanent establishments are also subject to income tax.
Kenya Revenue Authority returns are the periodic reporting of your income, expenses and other significant financial information to the Kenyan tax authorities. By doing these, individuals and businesses declare their taxable income. Also, they can settle any tax liabilities they owe to the government.
Depending on the unique circumstances, there are several types of KRA returns individuals and businesses need to file every year. Some of them include:
These returns are filed by people who earn income from various sources, including employment, rental properties, or self-employment. The individual income tax returns provide a comprehensive summary of the persons:
These are returns submitted by all businesses registered for VAT to help calculate VAT liabilities or refunds. These returns provide detailed information about the businesses:
Corporate Tax Returns are filed by all companies operating in Kenya. They enable their businesses to fulfil their obligation under the Income Tax Act. These returns disclose the corporates;:
Filling KRA returns is not as complicated as many people assume. Here is a detailed step-by-step guide on how to file PAYE for employees:
The first step in filling out your employee's returns is gathering all the necessary documents and information. These include:
To file returns with the P9 form online, you must access the KRA iTax portal by visiting and logging in to their official website. You can find it through your preferred browser, Chrome or Opera Mini.
Once you have accessed the KRA portal, you must enter your login details, including the KRA PIN and password. Also, if you don’t have an account with iTax, you can register for one on the portal before proceeding to the other steps. To login:
When you click Next in step 4, you will see a page from Section A to Section T. Fill out Part 1 of Section A, Basic Information. This section might lead you to another section but you must fill in the asked details appropriately. These include your:
Click Next, and you will automatically be given access to Section F, Details of Employment. However, even though the system will have already filled in those details for you, it is important to counter-check them before proceeding.
Click Next to access Section M, Details of PAYE Deducted at Source from Salary. Like the previous option, the system will have already filled in the details, but you should counter-check them to ensure they match your P9 form.
Click Next to access Section Q, Details of Income Paid in Advance. This section is only viable for employees who have made payments within that financial year. Therefore, if there are no payments, skip the section and proceed.
Click Next to access Section T, Tax Computation, the last section that has already been automatically prefilled. However, if needed, some of the things you will manually add include:
Once you have completed all the steps from Section A to Section T, you will see the Submit button on the screen. Click OK to confirm you want to submit the filled data. Finally, you will receive an instant notification Return Receipt Generated outlining your successful submission.
Lastly, you should download a return receipt using the downloadable link provided. In addition, you will receive an email highlighting that your returns for that particular financial year have been submitted successfully.
Alternatively, you can opt to file your returns using the P9 form. Here is a detailed guide on how to generate P9 forms for employees:
After the Excel sheet is open, accurately fill in the tabs containing the following details:
Click on the validate button to validate the data on the Excel Sheet. Upload the Excel Sheet and click on the submit button. Download the KRA eReturn Acknowledgment Receipt.
Learning how to file KRA returns for employees is a necessary skill. However, even though most people find it long and confusing, it is as simple as outlined above. Also, it is important to remember that failing to fill KRA returns by June 30th every year attracts penalties.
DISCLAIMER: This article is not sponsored by any third party. It is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
Tuko.co.ke published an article about filing NIL returns correctly on the KRA iTax portal. Filing a nil return indicates that you did not pay taxes in the respective financial year, as reported to KRA through your income tax return.
If a person with a valid KRA PIN is unemployed or did not earn any money, they should file NIL returns using the iTax system before June 30. So, how do you file nil returns? Find out here.
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