Filing the 2023 KRA returns online.
Filing the 2023 KRA returns online.

Taxpayers have been reminded by the Kenya Revenue Authority (KRA) to file their Annual Tax Returns for the year 2020 so as to avoid related penalties.

The exercise is meant for individual taxpayers and business entities whose accounting period runs from January to December.

A statement by Commissioner for Domestic Taxes Department at KRA, Rispah Simiyu, reminded individuals with employment income that they require P9 forms issued by their employers to file their tax returns.

“It is, therefore, paramount that employers issue their employees with P9 forms in good time for timely filing of their tax returns. Those with business income should have their books of accounts and financial statements for reference when filing their returns,” read the statement in part.

Simiyu further directed that Business entities whose accounting period corresponds to the calendar year are further required to pay their balance of tax for the year of income 2020, by April 30, 2021.

She noted that for entities running a different accounting period, the balance of tax should be paid on or before the last day of the fourth month after the close of the accounting period. The filing deadline for such entities is the last day of the sixth month after the accounting period.

Submission of all tax returns is done online on KRA’s iTax platform (http://itax.kra.go.ke). In addition to filing of tax returns, iTax is the gateway to conducting other tax business such as PIN application, tax payment, taxpayer ledger maintenance, application for tax compliance certificates, application for waivers and payment plans, among others.

iTax is among various technological advancements that KRA has put in place to enhance efficiency and simplify the tax administration process.

“KRA has continuously made deliberate efforts to simplify the process of filing tax returns for enhanced user experience. For instance, taxpayers with employment income only can now use the simplified web based pre-populated income tax return, labelled ‘ITR for employment income only’ on iTax to file their returns,” she explained.

Simiyu added that to further simplify tax processes, KRA has also introduced a mobile phone application known as M-service which enables taxpayers’ access to various services offered by the Authority such as taxpayer registration, filing of returns and payment of taxes.

“Taxpayers who did not have any income last year can use the M-service application to submit a Nil-return. Simplification of tax processes translates to higher compliance among taxpayers, hence KRA’s continued commitment to simplification of its processes,” read the statement sent to newsrooms today.

She explained that filing of one’s tax return is important since it is a declaration made to the Commissioner of the income earned or generated over a given period, asserting that contrary to popular belief, a Nil return constitutes such a declaration as well, hence the requirement to file one where appropriate.

In addition to tax payment, she said, filing of tax returns is a key tenet of tax compliance which KRA considers in the issuance of a tax compliance certificate and is often a requirement when seeking employment or business opportunities, especially in public institutions.

Individual taxpayers who fail to file annual tax returns within the stipulated time frame will be liable to a penalty of Sh 2,000 or five per cent of the tax due, whichever is higher. Non individual entities on the other hand are liable to a penalty of Sh 10,000 or five per cent of the tax due, whichever is higher, for late filing of returns.

See also; TSC asks teachers to file 2020 KRA returns by June 30, 2021- See circular and procedure

Simplified procedure for filling 2020 KRA returns, online:

Every individual with a PIN has been required to file their income tax returns for every year of income by 30th June of the following year. For this year the deadline will be June 30, 2021. This is a statutory requirement that if not met will attract penalties. Filing of returns also helps you to ascertain that what was deducted from your income as tax by your employer was actually remitted to KRA.

To successfully file your KRA returns the following are required:

  1. An internet enabled device (Mobile phone or computer)
  2. A P9 form from your employer.
  3. KRA PIN.
  4. iTax password.
Here are links to the most important news portals:

STEP BY STEP GUIDE TO FILING YOUR 2021 KRA RETURNS

  1. GETTING YOUR P9 FORM: Ensure you have downloaded, printed or screen shot your P9 form from the TSC online portal at: http://payslip.tsc.go.ke/login.php
  2. LOGGING INTO THE KRA ITAX PORTAL: Then, log into the KRA’s ITax portal by typing: https://itax.kra.go.ke/KRA-Portal/ into your browser.
  3. Enter your KRA pin (read from your P9 form) and click on login. On the next window, enter your password and security stamp and click on (Remember, you can regenerate your password in case you forgot one by using the FORGOT PASSWORD/UNLOCK ACCOUNT hyperlink on the same dialog box).
  4. Once logged in; click on E-Return hyperlink and in the next dialog box, select Tax Obligation as income Tax – Resident Individual. Now click on Next.
  5. DOWNLOADING THE EXCEL SHEET: On the next window. Select.. Click here to download Income Tax- Resident Individual Form (Excel).
  6. FILLING THE EXCEL SHEET FORM. Ensure your computer has Microsoft office Service Pack 2 or higher version of Office.
  7. Locate the excel sheet form and open it and fill in the parts, thus:

SECTION A PART 1:

  1. Personal Identification Number: Your KRA PIN
  2. Type of Return: Original
  • Return Period From: 01/01/2020
  1. Return Period To: 31/12/2020
  2. Do you have any income other than employment income: As Appropriate for your case
  3. Do you have partnership income: As Appropriate for your case
  • Do you have estate trust income?: As Appropriate for your case
  • Has your employer provided you with a car?: NO
  1. Do you have a mortgage?: As Appropriate for your case
  2. Do you have a Home Ownership Savings Plan?: As Appropriate for your case
  3. Do you have a life insurance policy?: As Appropriate for your case
  • Do you have a commercial vehicle?: As Appropriate for your case
  • Do you earn any income from a foreign country?: As Appropriate for your case
  • Have you been issued with the exemption certificate for disability?: As Appropriate for your case
  1. Do you want to declare Wife’s income?: As Appropriate for your case (Though easier when each declares separately)

Related news;

SECTION A PART 2: BANK DETAILS:

  1. BANK NAME: As Appropriate for your case
  2. BRANCH NAME: As Appropriate for your case
  • CITY: As Appropriate for your case
  1. ACCOUNT HOLDER’S NAME: As Appropriate for your case
  2. ACCOUNT NUMBER: As Appropriate for your case
  • SECTION A PART 3: DETAILS OF AUDITOR: As Appropriate for your case
  • SECTION A PART 4: LAND LORD DETAILS (SELF): As Appropriate for your case
  • SECTION A PART 5: TENANT DETAILS (SELF): As Appropriate for your case
  • SECTION A PART 5: TENANT DETAILS (WIFE):

NB: AVOID PART 3-5 IF NOT APPLICABLE.

  • SECTION A PART 6: DEATAILS OF EXEMPTION CERTIFICATE FOR DISABILITY (SELF AND WIFE): As Appropriate for your case
  • SECTION F: DETAILS OF EMPLOYMENT INCOME(SELF & WIFE)
  • PIN OF EMPLOYER: P051098084N
  • NAME OF EMPLOYER: TSC
  • GROSS PAY: (SUBTOTALS + ARREARS as on P9 form)
  • Allowances and benefits from employer (i.e hardship) other than car and housing: As Appropriate for your case
  • SECTION J: COMPUTATION OF MORTGAGE INTEREST (SELF & WIFE): Avoid if not applicable
  • SECTION M: DETAILS OF PAYE DEDUCTED AT SOURCE FROM SALARY (SELF & WIFE)
  • PIN OF EMPLOYER: P051098084N
  • NAME OF EMPLOYER: TSC
  • TAXABLE SALARY: (SUBTOTALS + ARREARS as on P9 form)
  • TAX PAYABLE ON TAXABLE SALARY: PAY AUTO(PAYE) + RELIEF as in P9 form
  • AMOUNT OF TAX DEDUCTED (PAYE): PAY AUTO(PAYE); as in P9 form
  • AMOUNT OF TAX PAYABLE OR REFUNDED (PAYE): Ensure the Amount of Relief displayed here corresponds to that on your P9 form
  • SECTION Q: DETAILS OF INCOME TAX PAID IN ADVANCE (SELF): As applicable for your case. But mostly not applicable for many if not all. Thus, leave it blank.
  • SECTION T: TAX COMPUTATION:
  • No. 11.1: DEFINED/ PENSION CONTRIBUTION: 00
  • No. 12.6: PERSONAL RELIEF: Enter Total MPR Value as in P9 form.
  • No. 13.4: 00
  • No.: 13.5: 00
  • CLICK ON VALIDATE TAB (Check properly that all fields are entered correctly and that the tax due is zero or close to zero!)
  • You will be prompted to save the sheets. Click on yes. Once validated, the form will be saved in drive c..Location Path: C/user/docs/date….._ITR.zip
  • UPLOADING THE FORM:
  • Go back to your ITAX Account on your browser.
  • UNDER THE INCOME TAX-RESIDENT INDIVIDUAL FORM:
  • TYPE OF RETURN: ORIGINAL
  • RETURN PERIOD FROM: 1/1/2018
  • RETURN PERIOD TO: 31/12/2018
  • UPLOAD FORM: Locate the form in drive C and double click on it
  • CHECK THE I AGREE TO THE TERMS AND CONDITIONS BUTTON.
  • CLICK ON

For latest news click on this link: Updated news portal

DOWNLOADING THE E-RETURN ACKNOWLEDGEMENT RECEIPT:

Evidence of upload is very essential. Ensure to save such evidence, just in case..!

  • Once successfully uploaded, a tab “e-Return Acknowledge Receipt” is displayed.
  • Click on it to down load it to your local PC…. Save a soft copy… print a hard copy (Back-up manenos!)
  • Remember to locate a copy of this in your mail box!
  • LOGGING OUT: Remember to log out of your ITax Account… more so if filling @ a cyber café….. For security and integrity reasons!

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