How to file your tax returns through the KRA iTax portal

The government has mandated the Kenya Revenue Authority (KRA) to assess, collect and account for all tax revenues following the written laws and the specified provisions of the stipulated regulations. Every Kenyan citizen with a PIN (Personal Identification Number) must file their annual KRA returns to show their national responsibility. So, do you know how to file your tax returns? Unfortunately, not everyone understands the procedures involved.

There are various categories of KRA returns applicable for Kenyan residents based on whether a citizen is employed or in business. The Parastatal Corporation, which became effective in 1995 after an act of Parliament, imposes heavy KRA penalties on individuals who do not file their returns on time. A simple guide on how to file your tax returns will help you avoid the punitive penalties.

How to file your tax returns

Before filing any return, Kenyan citizens must obtain a PIN certificate. A PIN is used while doing business with government agencies and service providers. With technology, citizens can now get this document trouble-free. The KRA PIN registration form is available on the iTax portal.

The PIN is unique to everyone, and you will use it to log in to the portal moving forward. The system generates a password when you log in for the first time. You can then change it and input a password you can easily remember for login purposes. If you lose your PIN certificate later, it is possible to search or retrieve it using your national identification card or the KRA portal.

How to file returns for employees

An income tax is a direct tax that a government levies on the income of its citizens. Income entails earnings from house property, profits from business, gains from a profession, capital gains income, and other sources.

Now that you have your KRA PIN certificate, you can file your annual return. With iTax, the process is not as tedious as it once was, and users can complete the entire process online. Before filing, every employee should have a P9 form provided by their employer.

Taxpayers are also eligible for personal relief, which is the money deducted by residents from the tax they are to pay. It was established to ease the tax burden on Kenyan citizens. Do you know how to file your tax return in Kenya? The process of filing tax as an employee is as follows;

1. Visit the iTax filing portal.
2. Login to the iTax portal with PIN and password.
3. Click on ‘e-Returns’ or select ‘Returns’ from the navigation menu and click on ‘File Returns’.
4. Select the 'Type', Enter your taxpayer’s PIN and select the Tax obligation applicable to you and click ‘Next’.
5. Based on the tax obligation you have selected, it opens the relevant tax form. For example, if you have selected ‘VAT’ as your tax obligation, it will open the VAT return form.
6. This page will take you through the filling process and will have detailed instructions to file tax returns.
7. The instruction will also have links to download the tax returns form in Excel or ODS format. Click the relevant link to download the template and save it on your computer.
8. Fill in all applicable areas in the downloaded tax returns form and save your document on your computer.
9. Make sure you enable macros to be able to ‘Validate’ and Zip your File.
10. Go to the iTax tax return filing page and select the period for which you are filing the returns.
11. Upload the zip file and agree to the terms and conditions by ticking the checkbox.
12. Finally, click the ‘Submit’ button to upload the returns and click ‘OK’ for the pop-up message ‘Do you want to upload the form’.

KPLC planned outages: How to check power interruptions in your area

Alternatively, you can use the following procedure;

1. Open your browser and visit the official iTax portal
2. On the platform, you will notice a section requiring your official PIN and password. Enter your issued credentials and answer the arithmetic sum and click log in.
3. Once logged in, head to the returns menu and click to avail a drop-down list. Choose ITR for Employment Income Only.
4. Select the return period and then choose yes for the question, do you have employment income. Press next when done.
5. This will avail an information page possessing all your personal and tax details. You will have basic information and other sections that you are supposed to check and confirm whether the details are correct.
6. Under section F, confirm whether the details of your employment are correct and as well as the gross pay and other allowances. You will be confirming this using your P9 form. If the Teachers Service Commission employs you, you can verify if the TSC employer PIN is written correctly.
7. Head over to sheet M, details of PAYE deducted and confirm if everything is entered correctly.
8. You can also go to section Q and capture any payment data made before filing the return.
9. Open section T, tax computation and enter the defined pension contribution amount per your P9 form and personal relief.
10. Once you are satisfied everything is filled correctly, slick submit and download the e-return acknowledgement receipt.

How to activate your vehicle insurance certificate in Kenya

How to file nil returns

Nil returns apply to Kenyans who did not earn any income in the last 12 months, either through business transactions or employment. The procedure involved is as follows;

1. Access the KRA iTax portal.
2. Log in to the iTax portal.
3. Click on "Returns" and choose "File NIL returns" on the drop-down menu.
4. In the type section, select "Self." As for Taxpayer PIN, the system will automatically fill in your KRA PIN.
5. In the Tax Obligation section, choose "Income Tax - Resident."
6. Click "Next" to proceed. The system will take you to the income tax-return period page.
7. Click "Submit." Read the message that will pop up at the top. Then, click "OK."

Guide for filing VAT returns

Business owners who have the VAT (Value Added TAX) obligation must have KRA-approved ETR (Electronic Tax Register) machines in their business activities. VAT is charged on the supply of taxable goods or services made or provided in Kenya and imported into Kenya. Businesspersons should learn how to register on iTax so that they follow the correct procedure.

TSC profile update online: requirements and simplified process

VAT returns are submitted monthly, on or before the 20th of the following month. The penalty for late payment is 5% of the amount due and a late payment interest of 1% per month on the unpaid tax until the fine is fully paid. To avoid delays, some Kenyans may opt to pay advance tax.

Here is how to file VAT returns on iTax;

1. Visit the iTax online portal.
2. Login to the iTax portal with PIN and password.
3. Click on ‘e-Returns’ or select ‘Returns’ from the navigation menu and click on ‘File Returns’.
4. Select the Type, enter your taxpayer’s PIN and select the Tax obligation as ‘VAT’ and Click ‘Next’.
5. Fill in all the details, such as Type of return, Entity type, branch name, and return period available on the return filing page.
6. Click ‘Upload’ and select the zip file generated by following step-3 discussed earlier.
7. Agree to the terms and conditions by ticking the checkbox.
8. Click the ‘Submit’ button to upload the VAT returns.
9. Click ‘OK’ for the pop-up message ‘Do you want to upload the form?"

Nation Courier Services branches, delivery, and tracking

What is tax compliance?

Due to the large amounts of data that KRA needs to compile, sometimes you may experience challenges with your filed returns. A Tax Compliance Certificate (TCC) confirms that you have filed all due returns and have no pending issues. It is also known as a tax clearance certificate.

Some employers also ask for the document as a pre-qualification for potential jobs. The same is required when opening a business or applying for tenders with the government or companies. Users are advised to print this certificate annually once they are done filing their KRA returns.

Frequently asked questions

1. How much does it cost to file KRA returns? Filing tax returns in Kenya is entirely free. However, if you require the services of a cyber cafe, the cost could vary from one cyber cafe to the other.
2. What is the deadline for filing KRA returns in 2023? The deadline for filing KRA returns is June 30th, 2023.
3. Can I file my KRA returns using my phone? Yes. It is possible to file returns from your phone if you download the iTax app from Google Play Store.
4. What is the penalty for not filing nil returns in Kenya? Failure to file annual returns by the due date attracts a penalty of additional tax equal to 5% of the normal tax, or Ksh. 10,000 for Non-Individual Taxpayers.
5. How do I check my KRA filing? Visit the KRA portal and click 'Status of your application' under 'Status Checker'.
6. What does the negative balance in the KRA mean? A negative balance means that you have a tax refund.
7. Who is eligible for nil returns in Kenya? Those who have no business or are not in gainful employment are eligible to file nil returns.

Is the Solar Factory app a scam or legit? Here's what you should know

How to file your tax returns: wrapping up

KRA returns apply to every Kenyan who is 18 years and above. Therefore, knowing how to file your return is essential. Whether you are employed or in business, you must pay your dues to the taxman to avoid inconvenience and as a show of responsibility and patriotism.

DISCLAIMER: This article 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. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!

Tuko.co.ke also published a guide on how to make temporary tattoos. Making a temporary tattoo is easier than you think. It can even be made using a few household supplies in the comfort of your home.

These tattoos can be made for recreational, decorative, and commercial purposes. The article has some tips and tricks you can utilise to make your temporary tattoos in no time.

Grace Waruguru (Lifestyle editor) Grace Waruguru is a lifestyle reporter and holds a Bachelor's degree in Communication (Public Relations) from Daystar University, Kenya (Class of 2010). She has over 4 years of experience in article writing and digital media content creation for various local and global brands. Currently based in Nairobi, Kenya, Grace started working at Tuko.co.ke in October 2020 and as a content creator at Brand2D (June 2022 - May 2023). In 2023, Grace finished the AFP course on Digital Investigation Techniques. Email: Wagachuhi@gmail.com

Vivian Mutsoli (Lifestyle writer) Vivian Mutsoli is an experienced writer with over four years on TUKO.co.ke. She has also worked on LEGIT.ng and written articles on various trending topics like celebrities, IT, academic institutions, and more. She is a holder of a Bachelor of Commerce (Procurement and Supply Chain Management) from the University of Nairobi class of 2020. In 2023, Vivian finished the AFP course on Digital Investigation Techniques. Email address: vmelsamutsoli@gmail.com