Filing tax returns is a legal obligation for all taxpayers in Kenya. Every year, the Kenya Revenue Authority (KRA) requires individuals, businesses, and companies to file their returns before June 30th of the following year. Failure to file or late filing may attract penalties and fines.
Here’s a step-by-step guide on how to file KRA returns in Kenya 2023.
How to File KRA Returns in Kenya
Step 1: Register on iTax
The first step to file KRA returns in Kenya is to register on iTax. iTax is an online platform that KRA uses to manage all tax-related services, including filing returns. To register, go to the KRA iTax portal and click on “New PIN Registration.” Fill in your details as required and submit the form. You will receive a registration confirmation email with your PIN and password.
Step 2: Download the KRA returns form
Once you have registered on iTax, you need to download the KRA return form. To do this, log in to your iTax account, and under “Returns,” click on “File Returns.” You will be directed to a page where you can select the tax obligation you want to file. Choose the appropriate tax obligation, and a list of available returns will appear. Select the return you want to file and click on “Download.”
Step 3: Fill in the return form
After downloading the return form, open it, and fill in the necessary information. The form has several sections, including personal information, income details, tax reliefs, and tax computations. Ensure that you fill in all the required fields accurately to avoid errors when submitting your returns. If you have any questions, you can refer to the iTax user guide, which is available on the KRA website.
Step 4: Upload the return form
After filling in the return form, save it on your computer and log in to your iTax account. Under “Returns,” click on “File Returns,” and select the appropriate tax obligation. Choose the return you want to file and upload the saved form. Once the form has been uploaded, review it to ensure that all the information is correct.
Step 5: Pay any outstanding tax
If you have any outstanding tax, you need to pay it before submitting your returns. To do this, log in to your iTax account and select the “Payments” tab. Choose the appropriate payment option and follow the prompts to complete the payment. After making the payment, go back to the “File Returns” tab and submit your returns.
Step 6: Receive acknowledgment receipt
After submitting your returns, KRA will send you an acknowledgment receipt. The receipt is proof that you have filed your returns successfully. Ensure that you keep the receipt safe as it may be required when applying for certain services or when seeking loans from financial institutions.
KRA Returns FAQs
Below are some of the frequently asked questions about filling out KRA returns in Kenya 2023.
What are KRA returns?
KRA returns are forms that taxpayers in Kenya use to report their income, deductions, and tax liability for a specific tax period. They are filed annually with the Kenya Revenue Authority (KRA).
Who needs to file KRA returns?
All individuals, businesses, and companies in Kenya who earn income are required to file returns. This includes those who are employed and those who are self-employed.
When are returns due?
KRA returns are due on or before June 30th of the following year. For example, returns for the tax year 2022 are due by June 30th, 2023.
What happens if I fail to file returns on time?
Failure to file returns on time may attract penalties and fines. The penalties and fines increase with time, so it’s important to file returns on time.
How do I register for iTax?
To register for iTax, visit the KRA website, click on the ‘iTax’ tab, and select ‘New PIN Registration.’ Fill in your personal details, including your name, ID number, email address, and phone number. Once you submit your details, the iTax system will generate a KRA PIN, which you will use to file your returns.
How do I file KRA returns?
To file KRA returns, log in to your iTax account using your PIN and password. Select the ‘Returns’ tab and choose the type of return you want to file, such as individual or company returns. Fill in the tax returns form accurately and submit it. The system will generate an acknowledgment receipt.
How do I make payment for KRA returns?
You can pay using various payment options, including M-Pesa, Airtel Money, or bank transfer.
How do I check my tax status?
You can check your returns status by logging in to your iTax account and selecting the ‘Returns’ tab. The system will display the status of your returns.
What if I have issues filing my KRA returns?
If you have any issues filing your KRA returns, you can contact KRA’s customer care or visit the nearest KRA office for assistance.
Filing KRA returns in Kenya is a straightforward process that requires you to register on iTax, download the return form, fill in the necessary information, upload the form, pay any outstanding tax, and receive an acknowledgment receipt.
It is essential to file your returns on time to avoid penalties and fines. If you encounter any challenges during the process, you can seek help from KRA’s customer service center or visit their offices for assistance.
Remember, filing your returns is not only a legal obligation but also a crucial part of building a prosperous and sustainable Kenya.