How to File KRA iTax Returns Online in Kenya (2024 Update)

The KRA iTax platform is designed to simplify tax filing for Kenyan taxpayers. It serves as a one-stop shop for all tax-related needs, from registration to filing returns and making payments.

The primary benefit of iTax is its convenience, as it eliminates the need for physical visits to KRA offices. You can access the platform from anywhere, at any time, using your computer or mobile device. Additionally, the system provides real-time updates and notifications, ensuring you stay informed about your tax obligations and deadlines.

The iTax platform is user-friendly and intuitive, making it easy for taxpayers to navigate and complete their filing process. Whether you're an individual, a corporation, or a partnership, iTax caters to all types of taxpayers and their specific requirements.

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Types of KRA Tax Returns

The iTax platform supports various types of tax returns, catering to different categories of taxpayers. Understanding the type of return you need to file is crucial for accurate and timely submission. Here are the main types of KRA tax returns:

Income Tax for Individuals

Individual taxpayers, whether employed or self-employed, must file their income tax returns annually. This includes salaried employees who receive a P9 form from their employers, as well as self-employed individuals who must declare their income and expenses.

Corporate Tax

Corporations operating in Kenya are required to file annual tax returns, declaring their income, expenses, and any applicable deductions. The iTax platform provides a streamlined process for corporate tax filing, ensuring compliance with the latest regulations.

Value Added Tax (VAT)

Businesses that supply taxable goods or services must file monthly VAT returns. This involves declaring the VAT collected from sales and the VAT paid on purchases. The iTax system automatically calculates the net VAT payable or refundable, simplifying the process for taxpayers.

For a more detailed look at the various types of KRA tax returns, refer to our comprehensive guide on KRA iTax Returns.

Getting Started with iTax

Before you can start filing your returns on the iTax platform, you need to register and obtain a KRA PIN (Personal Identification Number). This unique identifier is essential for all your tax-related activities. Here's how you can get started:

Registering for a KRA PIN

1. Visit the iTax Portal: Go to the official KRA iTax portal.

2. Select New PIN Registration: Click on the "New PIN Registration" link on the homepage.

3. Fill in Your Details: Provide your personal information, including your national ID number, date of birth, and contact details.

4. Submit the Form: After filling in the required details, submit the form to receive your KRA PIN.

Retrieving a Lost KRA PIN

If you've misplaced your KRA PIN, don't worry. You can easily retrieve it by following these steps:

1. Visit the iTax Portal: Go to the KRA iTax portal.

2. Select Retrieve PIN: Click on the "Forgot PIN" link on the login page.

3. Enter Your Details: Provide your national ID number and other required information for verification.

4. Receive Your PIN: Once your identity is verified, your KRA PIN will be sent to your registered email address.

With your KRA PIN in hand, you're now ready to log in to the iTax platform and start filing your returns.

Step-by-Step Guide to Filing Returns

Filing your KRA returns on the iTax platform is a straightforward process. Follow this step-by-step guide to ensure a smooth and accurate filing experience:

Logging into the iTax Platform

1. Visit the iTax Portal: Go to the KRA iTax portal.

2. Enter Your KRA PIN: Input your KRA PIN in the designated field and click "Continue".

3. Enter Your Password: Provide your iTax password and click "Login" to access your account.

Filing Income Tax Returns

1. Select the Return Type: From the dashboard, choose the type of return you want to file (e.g., individual, corporate).

2. Download the Excel Template: Download the relevant Excel template for your return type.

3. Fill in the Template: Enter your income, expenses, and any applicable deductions in the provided fields.

4. Upload the Template: Once you've completed the template, upload it back to the iTax portal.

5. Submit the Return: Review the information for accuracy and submit your return.

For a more detailed procedure on filling out the P9 form and other income tax returns, refer to our step-by-step instructions.

Filing VAT Returns

1. Select VAT Return: From the list of available returns, choose "VAT Return".

2. Enter Sales and Purchases: Provide details of your sales and purchases for the relevant month.

3. Calculate VAT: The system will automatically calculate the VAT payable or refundable based on your input.

4. Submit the Return: Review the information and submit your VAT return.

By following these steps, you can easily file your income tax and VAT returns on the iTax platform. Remember to keep accurate records of your income and expenses throughout the year to simplify the filing process.

Filing Nil Returns

Even if you didn't generate any income during the tax period, you're still required to file Nil returns. This process is simple and can be completed quickly on the iTax platform. Here's how:

1. Log into the iTax Portal: Go to the KRA iTax portal and log in using your KRA PIN and password.

2. Select File Nil Returns: Click on the "File Nil Returns" button on your dashboard.

3. Choose the Tax Obligation: From the dropdown menu, select "Income Tax - Resident Individual".

4. Confirm the Tax Period: The system will automatically fill in the appropriate tax year for your Nil return.

5. Submit the Return: Click "Submit" to file your Nil return successfully.

For more information on filing Nil returns and its importance, check out our guide on how to file KRA Nil returns.

New Amendments in 2024

The Finance Act of 2023 introduced several amendments to the tax filing process, which came into effect in 2024. It's crucial to stay updated with these changes to ensure compliance and avoid penalties. Here are the key amendments:

1. Turnover Tax (TOT): The TOT rate has been increased from 1% to 3% for businesses with a gross turnover between KES 1,000,000 and KES 25,000,000.

2. Value Added Tax (VAT): Changes to the VAT return process include the unavailability of certain sales and purchase sheets for specific periods.

3. PAYE Brackets: The PAYE band brackets have been updated, with new rates taking effect from July 1, 2023.

4. Affordable Housing Levy: A new deduction from employees' gross salaries has been introduced to fund affordable housing initiatives.

For a more in-depth look at these amendments and their implications, read our article on changes in filing KRA tax returns for 2023.

Common Mistakes to Avoid

One must be aware of common mistakes taxpayers make to ensure a smooth and error-free filing process. By avoiding these pitfalls, you can save yourself from penalties and unnecessary stress:

1. Incorrect Information: Double-check all details, such as your KRA PIN and income figures, to ensure accuracy.

2. Missed Deadlines: File your returns before the June 30 deadline to avoid late payment penalties.

3. Incomplete Forms: Ensure all required fields are filled out correctly and completely.

4. Incorrect Tax Computations: To avoid discrepancies, use the correct formulas and rates when calculating your taxes.

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FAQs

Despite the user-friendly nature of the iTax platform, taxpayers may still encounter issues or have questions during the filing process. Here are some frequently asked questions and troubleshooting tips:

What if I can't log in to my iTax account?

If you're having trouble logging in, use the correct KRA PIN and password. If you've forgotten your password, use the "Forgot Password" option on the login page to reset it. If the issue persists, contact the KRA helpdesk for assistance.

How do I correct an error in my submitted return?

If you discover an error in your submitted return, you can amend it on the iTax platform. Navigate to the "Returns" section, select the relevant return, and click "Amend Return". Make the necessary corrections and resubmit the amended return.

What happens if I miss the filing deadline?

Missing the filing deadline attracts penalties and interest on the outstanding tax liability. To avoid these charges, file your returns before the June 30 deadline. If you cannot file on time due to unforeseen circumstances, contact the KRA to discuss your options.

Filing your KRA tax returns online through the iTax platform has never been easier. By following the steps outlined in this guide and staying informed about the latest amendments, you can ensure a smooth and compliant filing process. Remember to keep accurate records, double-check your information, and file your returns before the deadline to avoid penalties.

If you encounter any issues or have further questions, don't hesitate to seek assistance from the KRA helpdesk or consult the various resources available online. With some preparation and attention to detail, you can confidently navigate the iTax platform and fulfill your tax obligations as a responsible Kenyan citizen.