If you earn income in Kenya, the Kenya Revenue Authority (KRA) requires that you file your income tax returns by June 30 of each year.
Just like applying for a Personal Identification Number (PIN) on iTax, completing your returns is just as easy and shouldn’t take more than 15 minutes. This is if you have the necessary documents. For those who have a job, you need a P9 form from your employer and if you are self-employed you will need an income statement. For those who are not engaged in gainful activity, such as students, it is also expected to file a return, but it will be a null return.
After you save a pin code you will receive a password to access your iTax account on the email address you used during registration. Use this password to log in, after which you can change it to a password of your choice.
Once logged into your account on the KRA iTax System you will find this home page. Since in this case we are submitting the annual reports, click on the Return menu.
After clicking on the Returns menu, a drop-down list will appear. Choose the first option which is File return‘if you are in business. For employment income, choose the ITRs for employment income only option. If you are a student and have no other source of income than your parents, choose the Submit a null return option.
If you have already filed your return but find out that you entered incorrect information. You have the option to redo the return and file it again. In this case, you will choose the second option which is “File a modified return”. You can also consult the return you have filed.
Once you click on Return File, you will be taken to the next page. For the purposes of this article, I have selected the first option which is personal income tax. After selecting the appropriate option, click Next.
If you are an employee and have no additional income, all you need to do is add your details on the form.
If you are an employee and have additional income, you will need to download an Excel sheet on which you will enter the relevant data. if you are in business, you will also need to download the excel sheet.
The downloaded Excel sheet looks like this.
The options you select on the Basic Info Sheet will determine the type information required from you. For example, if you indicate that you have income other than employment income, an income statement sheet is generated and you need to insert your business details.
Once you have filled in all the required information in the iTax sheet, you will come to the last sheet which is the tax calculation. It basically calculates all the data you put in the other sheets and shows you how much you owe the taxman, if any.
If you are satisfied with what you have inserted so far, click on validate. In case you have filled in all the necessary information, you will be given the option of compressing the file for uploading to the iTax system. However, if there are any areas with problems, you will be redirected to the error sheet which indicates the areas that need your attention. You will need to correct these errors before you can download.
Once you are done filling out the form and there are no errors, it is then compressed into a zip folder which you can easily upload to iTax. Be sure to indicate whether this is the original statement or an amended version. Also indicate the return period which in this case is from January to December 2015, accept the terms and conditions and finally submit.
After submitting the return, you will receive an acknowledgment number and an email confirming that you have successfully submitted your return.
There you have it, as you have seen, submitting the returns is quite easy and you have no excuse not to do it. Make sure you submit your returns early enough to avoid the last minute rush.