Filing your Kenya Revenue Authority (KRA) returns is a legal obligation for every taxpayer in Kenya. The process has been simplified by KRA’s online portal, making it easy for individuals and businesses to file their returns from the comfort of their homes or offices. This guide will take you through the steps of filing KRA returns online using the iTax platform, Kenya’s official tax management system.
Why You Should File KRA Returns Online
Filing KRA returns online offers several benefits:
- Convenience: You can file your returns from anywhere at any time without visiting the KRA office.
- Efficiency: The process is quicker, and the system auto-generates calculations, reducing errors.
- Compliance: Timely filing helps avoid penalties and interest charges for late submission.
- Transparency: The online platform provides clear records of your tax filing history.
Requirements for Filing KRA Returns Online
Before you begin the process, make sure you have the following:
- KRA PIN: Every taxpayer must have a Personal Identification Number (PIN), which is used for identification on the KRA platform. You can apply for your KRA PIN online if you don’t have one.
- Tax Obligation Information: Depending on whether you’re filing as an individual, a company, or a business, ensure you have all the relevant tax information (e.g., income details, allowable deductions, etc.).
- iTax Account Access: You need an iTax account with KRA. If you don’t have an account, you will need to create one before filing.
Step-by-Step Guide on How to File KRA Returns Online
1. Access the iTax Portal
To file your KRA returns, go to the official iTax portal:
https://itax.kra.go.ke
Ensure that you are using a reliable internet connection to avoid interruptions during the filing process.
2. Log in to Your iTax Account
- Click on the Login button on the iTax homepage.
- Enter your KRA PIN and password to access your account. If you don’t remember your password, there is a “Forgot Password” option to reset it.
3. Select the ‘File Returns’ Option
Once logged in, navigate to the Returns menu:
- Select File Returns from the drop-down menu.
4. Choose the Type of Return to File
Next, choose the type of return you wish to file. Depending on your tax obligations, the options include:
- Income Tax (for individuals or businesses).
- VAT Returns (for businesses registered under VAT).
- PAYE (Pay As You Earn) returns (for employers).
- Excise Tax Returns (for manufacturers and producers of excisable goods).
For an individual taxpayer, you will most likely file the Income Tax Return (ITR).
5. Complete the Tax Return Form
Once you select the appropriate return type, you’ll be prompted to fill in the required fields:
- Income Details: Report all your sources of income for the year (salary, business income, etc.).
- Deductions: Input any allowable deductions, such as insurance premiums, pension contributions, and any other tax-deductible expenses.
- Tax Computation: The system will automatically calculate the tax payable based on the information you provide.
- Attachments: Some returns may require you to upload supporting documents such as your payslips, business income statements, or other financial records. Ensure these documents are in the correct format (PDF or JPEG).
6. Review Your Return
Before submitting your return, take a moment to review all the information you’ve provided. Double-check the figures to ensure accuracy, especially when it comes to income details and deductions. Mistakes or discrepancies could delay processing or lead to penalties.
7. Submit Your Return
Once you’re satisfied with the details, click on the Submit button to file your return. You will receive a confirmation message from the iTax system, and a Submission Acknowledgement Receipt will be generated. Keep a copy of this receipt for your records.
8. Make Payments (If Applicable)
If you owe taxes, you will be prompted to make a payment after filing your returns. KRA provides various payment methods:
- Mobile Money: Pay via M-Pesa or Airtel Money.
- Bank Transfer: Pay using the KRA-approved banks.
- e-Citizen: Make payments via the eCitizen portal.
You can also print the payment slip to take to the bank for payment processing.
9. Download Your Returns
Once you’ve submitted your returns and made any necessary payments, you can download your Tax Compliance Certificate (TCC) or the filed returns form from the iTax portal. This certificate may be required for various business operations or loan applications.
Common Mistakes to Avoid When Filing KRA Returns
- Missing or Incorrect KRA PIN: Ensure that your KRA PIN is correct and active. If you have lost it, visit the iTax portal for PIN recovery.
- Late Filing: Late submission attracts penalties and interest charges. Always ensure that you file before the deadline.
- Incorrect Income Reporting: Ensure that you report all sources of income. Omitting income or inflating deductions can lead to penalties or audits.
- Failure to Pay Taxes Due: If you owe taxes, make sure to pay promptly to avoid penalties or interest charges.
- Failure to Keep Records: Retain all supporting documents for at least five years, as KRA may request them during audits.
Filing your KRA returns online through the iTax portal is straightforward, but accuracy and timeliness are key to staying compliant with Kenyan tax laws. By following the above steps, you can complete the process efficiently and avoid unnecessary penalties. Remember, KRA offers various tools and support to help you file your returns correctly, including helplines and guides on the official iTax portal.
