Filing tax returns is a crucial obligation for all taxpayers in Kenya. The Kenya Revenue Authority (KRA) mandates that all taxpayers file their returns by the 30th of June of every year. This guide will provide step-by-step instructions on how to file KRA returns in Kenya.
Step 1: Register for KRA PIN
The first step to filing KRA returns is to have a KRA PIN. If you do not have a KRA PIN, you need to apply for one by visiting the KRA website or any of their offices. You will be required to provide your personal details such as your name, ID number, and phone number. Once you have registered, KRA will send you a PIN certificate to your registered email address.
Step 2: Determine your Tax Obligation
After obtaining your KRA PIN, you need to determine your tax obligation. Your tax obligation depends on your income and the type of income you receive. The different types of income in Kenya include employment income, business income, rental income, and capital gains. It is important to note that if you have more than one source of income, you need to file separate returns for each type of income.
Step 3: Gather Relevant Documents
Before filing your returns, you need to gather all the relevant documents that will be required. These include your KRA PIN, your ID card or passport, your P9 form (for employed individuals), your business income statement (for business owners), and any other relevant documents that may be required depending on your tax obligation.
Step 4: Log in to KRA iTax Portal
To file your KRA returns, you need to log in to the KRA iTax portal. You can access the portal by visiting the KRA website and clicking on the iTax link. Once you are on the iTax portal, enter your KRA PIN and password to log in.
Step 5: Select the Appropriate Tax Obligation
After logging in, select the appropriate tax obligation that you need to file. For instance, if you have employment income, select the “Employment Income – PAYE” option. If you have business income, select the “Turnover Tax” option.
Step 6: Fill in the Required Details
After selecting the appropriate tax obligation, you will be directed to a page where you will be required to fill in the required details. These details may include your personal details, income details, and tax reliefs. It is important to ensure that all the details are filled in accurately.
Step 7: Submit the Returns
After filling in all the required details, review the information to ensure that it is accurate. If everything is in order, click on the “Submit” button to submit your returns. You will receive a confirmation message indicating that your returns have been submitted.
Step 8: Print the Acknowledgment Receipt
After submitting your returns, you need to print the acknowledgment receipt. The acknowledgment receipt serves as proof that you have filed your returns. To print the receipt, click on the “Print Acknowledgment Receipt” button and save the receipt for future reference.
Step 9: Pay Any Tax Due
If you have tax due, you need to pay it using the payment options available on the iTax portal. These options include mobile money, bank deposit, and credit/debit card payments. It is important to note that you need to pay any tax due by the 30th of June to avoid penalties and interest charges.
Step 10: Keep Records
After filing your KRA returns, it is important to keep records of all the documents that you used to file the returns. These include the acknowledgment receipt, the tax payment receipt, and any other relevant documents. Keeping records ensures that you can easily access the documents when Filing KRA Returns.
How to File Nil KRA returns
Filing nil KRA returns means submitting a tax return to the Kenya Revenue Authority (KRA) indicating that you did not earn any income or your income was below the taxable threshold. Here are the simple steps to follow:
- Go to the KRA website (https://www.kra.go.ke/) and click on the “i-Tax” tab.
- Log in to your i-Tax account using your KRA PIN and password.
- Once logged in, click “Returns” on the main menu and select “File Nil Returns.”
- Select the tax obligation for which you want to file nil returns. This could be Income Tax, Value Added Tax (VAT), or any other tax obligation that applies to you.
- Fill in the required details in the return form, such as your personal information and the period for which you are filing nil returns.
- Confirm the details you have entered and submit your return.
- After submitting your return, you will receive a confirmation message indicating that your nil return has been filed successfully.
It is important to note that even if you did not earn any income, it is still mandatory to file nil returns to avoid penalties for late or non-filing. It is also advisable to keep a copy of your confirmation message or receipt as proof of filing.
In conclusion, filing KRA returns in Kenya is a straightforward process that requires a few steps. It is important to remember that filing tax returns is an obligation that every taxpayer must comply with. Failing to file returns or paying taxes on time can attract hefty penalties and interest charges. Following the steps outlined above, you can file your KRA returns on time and avoid unnecessary penalties. It is also important to keep records of all the relevant documents to avoid any complications in case of an audit.