KRA Online iTax Platform: How to File Tax Returns
The iTax online platform has simplified the lives of taxpayers by helping them meet their various tax obligations. Filing KRA tax returns through iTax has become straightforward and more accessible.
Every financial year in Kenya, the Kenya Revenue Authority (KRA) requires all registered taxpayers with a Personal Identification Number (PIN) to file tax returns. Those without a business or gainful employment must file nil KRA tax returns.
The iTax filing system is tailored to accept various types of KRA returns, including income tax for residents, corporations, partnerships, and indirect taxes such as VAT and excise. Depending on your tax obligation, you must select the appropriate type of iTax return and file accordingly.
To learn more about the different types of KRA tax returns that can be filed through the iTax online portal, please refer to our article, ‘KRA iTax Returns.’
In this article, we will discuss the process of filing KRA returns online, or iTax filing.
The steps for filing KRA returns are almost identical for all types of returns, whether it’s income tax for individuals, corporations, or VAT returns. The only variation lies in the specific details required and the format of the submission.
For instance, the details and format for filing income tax returns will differ from those for filing VAT returns, but the overall steps remain similar.
KRA Online iTax Platform: How to File Tax Returns
- Visit the iTax filing portal at https://itax.kra.go.ke/KRA-Portal/.
- Log in to the iTAX portal with your PIN and password.
- Click on ‘e-Returns’ or select ‘Returns’ from the navigation menu and choose ‘File Returns.’
- Select the type, enter your taxpayer’s PIN, select the applicable tax obligation, and click ‘Next.’
- The relevant tax form will open based on your selected tax obligation. For example, selecting ‘VAT’ will open the VAT return form.
- Follow the instructions provided on the page to fill in the required details. You can also download the tax return form in Excel or ODS format from the provided links.
- Fill in all applicable areas in the downloaded tax return form and save it on your computer.
- Enable macros to ‘Validate’ and zip your file.
- Navigate to the iTax tax return filing page, select the filing period, upload the zip file, and agree to the terms and conditions.
- Finally, click the ‘Submit’ button to upload the returns and confirm the action.
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Upon filing KRA returns, an e-return receipt will be generated, confirming the successful submission along with an acknowledgment number.
In summary, the iTax filing process is straightforward, provided you have all the necessary details readily available in the downloaded Excel template. For businesses, the process is even more streamlined if they use software that can automatically capture the required details into the prescribed Excel format and upload them to complete the filing process.
As discussed in the preceding section on ‘How to File KRA Returns,’ the steps for iTax filing are similar for all types of returns applicable to both businesses and individuals. This uniformity simplifies the process of iTax filing for everyone involved.
Types of Taxes
PAYE, which is for employers only, functions as a method of collecting tax at source from individuals in gainful employment, including workers of religious organisations and foreign missions working in Kenya.
Withholding Tax, wherein the payer of certain incomes is responsible for deducting tax at source from payments made and remitting the tax so deducted to the authority Withholding tax may or may not be a final tax.
Advance tax is a tax paid in advance before a public service vehicle or commercial vehicle is licenced at the rates applicable.
Turnover Tax is applicable to businesses whose turnover (income) does not exceed Kshs. 5 million during any year of income. Businesses pay it every three calendar months, subject to a 3% tax on gross income.
Rental Income for Residential Property, payable by a resident person, applies to rental income that has accrued or been derived from Kenya for the use or occupation of residential property with rental income of Kshs. 10 million or below per annum. The resident person must pay a 10% tax rate on the gross rent they receive each month.
Installment Tax is paid by both individuals and corporate taxpayers who have a tax liability of over Kshs. 40,000 payable for any year, excluding individuals whose tax liability for a particular year is fully covered by PAYE.
Capital Gains Tax (CGT) pertains to income, in respect of which tax is chargeable on a gain that accrues to a company or an individual.
Fringe Benefit Tax, payable by every employer in respect of a loan provided to an employee, director, or their relatives at an interest rate lower than the market interest rate.
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KRA Online iTax Platform: How to File Tax Returns
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