How to File KRA iTax Returns Online in Kenya

In the digital age, the Kenya Revenue Authority (KRA) has allowed taxpayers to fulfill their responsibilities through the iTax platform. As every registered taxpayer with a Personal Identification Number (PIN) must file tax returns annually, the iTax system has revolutionized this process, making it convenient and straightforward. Whether you're an individual, a corporate entity, or part of a partnership, you can file returns for different taxes, including income and indirect taxes like VAT and Excise. This article delves into how to file KRA iTax returns online in Kenya. 

Understanding the Tax System in Kenya

The Kenyan tax system, administered by the Kenya Revenue Authority (KRA), primarily includes two categories: direct taxes and indirect taxes. The direct taxes are income tax and capital gains tax. Indirect taxes comprise value-added tax (VAT) and excise duty. Understanding these categories is crucial as the process of filing returns differs based on the type of tax.

Types of KRA Returns

KRA returns include income tax returns, VAT returns, and PAYE returns. Each return type demands different information, but the commonality is the requirement of a valid PIN issued by KRA. Though electronic filing through the KRA's iTax system is most common, taxpayers also have the option to file paper returns in person at a KRA office.

Preparation of Documents for Filing Returns

Before filing returns, you need to prepare several documents. This includes income statements, expense records, and other relevant financial documents. Moreover, you need a valid KRA PIN. If you don't have one, apply for it through the KRA's iTax system or at a KRA office. Remember to understand the type of return you're filing and determine your method of filing (electronically through iTax or physically).

Registering for iTax

Registering for iTax is relatively easy. Visit the KRA website, select the iTax tab, and choose your registration category (individual or business). Fill in the necessary information, upload the required documents, and verify your email address and phone number. Once your account is activated, log in to iTax and complete the registration process.

Steps to File KRA iTax Returns Online

1. Visit iTax: Begin by visiting the iTax filing portal here.
2. Log in: Use your PIN and password to access the iTax portal.
3. Click 'e-Returns' or 'File Returns': These options are available in the navigation menu.
4. Select the Type: Enter your taxpayer's PIN, select the applicable Tax obligation, and click 'Next.'
5. Open the relevant tax form: If you've selected 'VAT' as your tax obligation, it will open the VAT return form.
6. Follow the instructions: The page will guide you through filing and provide links to download the tax return form.
7. Fill in the form: Fill in all the relevant areas in the downloaded tax return form.
8. Submit the Form: Click on the 'submit' button. The system will authenticate and validate the form, after which a success message will be displayed.
9. Download the Receipt: Once you've successfully submitted your return, you can download an e-receipt which acts as an acknowledgment from KRA that they have received your tax returns. Keep this receipt as proof of filing your return.
10. Settle the Due Amount: If any tax is due as per the return you have submitted, an e-slip will be generated indicating the amount to be paid. Pay this due amount via any KRA-approved payment method.
11. Review: Once the payment has been made, review your returns and confirm all the information is correct.
12. Correcting Errors: If you find errors after submission, you can file an amended return through iTax. Remember that the penalty for not filing returns on time is Ksh. 20,000 or 5% of the tax due, whichever is higher.

Meeting the Deadline

The KRA expects all taxpayers to file their tax returns by the 30th of June of every year. Filing late returns can result in penalties, so keeping track of this deadline and completing the filing process on time is crucial. The iTax platform is available 24/7, allowing you to file returns anytime and anywhere.

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Conclusion

Filing KRA iTax returns online is a simple process that brings convenience to the taxpayer. Understanding the taxation system, knowing the type of returns to file, preparing the necessary documents, and registering for iTax are crucial steps before starting the process. Following the laid-out procedure ensures a smooth and hassle-free filing experience. Remember, filing tax returns is not just a legal requirement but also a responsibility towards nation-building.

Whether you're an individual or a business, the key to efficient tax filing is understanding your obligations and planning. This allows you to gather all necessary documents and reduce the risk of making mistakes on your returns. As you file your 2023 tax returns, keep this guide to navigate the iTax system successfully.