Here is how to file Tax returns on iTax If you are a business owner or an employee. KRA requires you to submit your income tax returns online monthly on the KRA iTax Kenya Portal.
Two unique documents are used; A P9A form for employees and a profit and loss statement for self-employed individuals.
Terms used by KRA and their meaning
- PIN – Personal Identification Number
- ITI – Individual Return
- PAYE – Pay As You Earn
- KRA – Kenya Revenue Authority
- ITMS – Integrated Tax Management System
- HOSP – Home Ownership Saving Plan
- DRP – Detailed Report
- P9 – Tax Deduction Card
- TSW – Tax Payer Software
- W44 – Withholding Tax Certificate
How to File tax returns online
To complete iTax returns filing, you will need the following documents where applicable:
- Form P9A from Employer.
- The employer’s PIN. Request a PIN from your employer if not already on the P9A.
- Financial statements for the following incomes; business income, farming income,
and rental income.
- Mortgage Interest Certificate and PIN of the lender
- Insurance Premium Certificate and PIN of the underwriter
- Withholding tax certificates (W44)
- Any other documentation relating to income you received or deductions you want
Note: If you have any other income besides employment, you must fill in the Excel Income Tax Return and provide additional income details.
How to File Employment income on iTax
- Access the KRA iTax web Portal on your computer browser.
- Enter your KRA PIN to log in and follow the simple instruction.
- Under the Return Menu, select the last item, “ITR For Employment Income,” only.
- Fill in all the fields marked with an asterisk under Section A.
- Under the tax computation in Section T, only two items are necessary if your employer has successfully submitted their tax returns.
- Items 1.1 Defined/Pension contribution – Fill in the actual amount contributed by the employee.
- Item 2.5 Personal Relief – Fill in the Annual Relief up to a maximum of Ksh 13,944
- Scroll to the bottom of Section F and confirm gross pay as per the p9form
- Details of PAYE deducted at the source Section M – Confirm that the taxable salary, tax payable, and tax deducted tally with the information on the p9 form. Modify if necessary.
- Fill in the income tax details filed in advance, Section Q, if Applicable. – Fill in details of any tax paid before filing the current returns.
- Once complete, click on submit.
File KRA income tax returns – Non-Employment income
Login to the iTax website by providing your credentials, i.e., PIN and password. If you have forgotten your password, request a new one by clicking on the “Forgot Password” tab and using your mail to recover it. Select the “e-Return” tab, as shown below.
Select the return type, e.g., Income Tax individual, click the Next button, choose the period, and agree to the terms and conditions on the next page. Follow the steps shown to download the P9 form.
Unlike the KRA system, on the iTax Kenya Portal, one has to download an excel sheet to input the relevant data. Extract the zip file and fill out the form in Excel; remember to enable macros in your Excel application.
The P9 Form
Fill out all the fields marked with a red asterisk under the Basic Info sheet, as this will determine the type of information needed in the subsequent sheets.
The last sheet, which is known as “Tax Computation,” is used to calculate all the data entered in the other previous sheets and shows you how much you owe KRA, if at all.
If satisfied with the information entered in the workbook, click the Validate button, zip your file, and upload it. If there is an issue with your workbook, you will be redirected to the ERROR sheet, highlighting the sheets with errors that require correction.
Upload your zipped file online to iTax as shown in step 3. you will receive an acknowledgement message confirming that you have successfully submitted your return, as shown below.
Watch the short video on how to file your income tax returns online on the iTax Kenya web Portal.