A comprehensive guide explaining how to file your KRA returns online

Because of iTax’s user-friendly interface, filing has become easier. With the help of filed returns, taxpayers can calculate their taxes, ask for a refund, and request an overpayment. For those who did not file these returns, penalties would be applied by the Kenya Revenue Authorities.

The law mandates that all Kenyans, wherever they may be, file their taxes.  As mandated by the Kenyan government, all individuals who are employed and earn a specific income level must submit a tax return by a specified deadline. 

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Filing returns encourages civic engagement, even though many people would rather not because they think it is optional. The government needs to know about the money it receives from its citizens and provide a platform for evaluating claims and other essential services.

Types of tax returns that KRA requires filing

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Tax on Turnover (TOT)

It is a tax that companies must pay according to their gross sales. The first day of 2020 was the effective date of the charge.

Tax on Value Added (VAT)

It is a tax imposed on corporations and enterprises that generate more than $5 million in revenue annually from the provision of supplies, goods, or services in Kenya.

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Related: Understanding Taxation and How It Affects You

Tax on rental income

Landlords and landladies are subject to this tax on the income they receive from the properties they own. Depending on whether the houses are used for residential or commercial purposes, there may be a charge.

Revenue from agencies

KRA collects this tax on behalf of agencies. It is made up of two taxes: stamp duty, which is collected by the Ministry of Lands on shares, stocks, and real estate, and betting tax, which is collected from businesses, lotteries, and betting establishments.

Excise tax

This tax return is applied to both goods produced domestically and those imported into Kenya. The products may include, among other things, electronics such as tablets and phones.

Capital Gains Tax

It became effective on January 1st, 2015, and was imposed on companies and individuals who moved properties within the country.

Income Tax Return

It covers residents of the country who are foreign nationals as well as citizens. It is immediately deducted from a person’s earnings from a variety of sources, such as dividends, businesses, and jobs.

Pay as you earn (PAYE)

This is how the government deducts money from people who work in labor-supporting industries.  These profits are obtained by employees from their employers in exchange for services rendered. These benefits include bonuses, fees, travel, and leave in lieu of vacation.

Withholding tax

It is a tax that, after deducting a certain amount of tax, those who pay for goods and services have to pay to the commissioner on behalf of their beneficiaries. Examples include consulting fees, entertainment fees, and royalties.  Typically, the twentieth of the month after the month it was withheld is when this tax is withheld.

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A corporation’s tax

This tax is classified as income for corporations and other business entities. These businesses may be foreign or Kenyan, and they are required to pay taxes on an annual basis.

Advance tax

This type of income tax must be paid in full before registering a public service vehicle for an annual inspection.

The simple instructions that you must follow to file your returns

  • Open the iTax KRA portal with your PIN. To access it, use a simple math formula to enter your PIN and password.
  • Click Return, select E-Returns, and you will be prompted to download and unzip the Excel form packed to your computer.
  • To enter your data, if macros are not enabled, enable them on the Excel page. information that you want to file for, like the date, the return window, and the PIN.
  • Select the type of tax file that you want. Check to see if someone has opened the form you are meant to file.
  • To continue filling out the information about your employment income that will be deducted from your taxes, click Next.
  • After completing the form, you need to click the “validate” button located at the bottom. Click the yes button in the pop-up window that asks to create the originally uploaded folder to download the zipped form.
  • Go back to your KRA site, finish your tax period, and check the box to confirm that you agree with the terms and conditions listed there. Click submit, then “yes” when asked to upload your zip form.
  • A digital receipt featuring your acknowledgment number will be sent to you as proof of submission of your returns.

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