how to file kra returns in kenya

 

 

HOW TO FILEKRA TERURNS FOR AN EMPLOYED PERSON

Get to know How to File KRA Returns using P9 Form online today. File your KRA Returns easily using our step by step guide. 

Are you employed and have with you KRA P9 Form? It’s time that you learn How to File KRA Returns Using P9 Form. The process is not that complicated and this article will show you the steps you need to follow to file your KRA Returns today. 

In this article, I will be showing you How to File KRA Returns using P9 Form. 

 

Requirements for Filing KRA Returns for those in Employment

For you to be able to file KRA Returns using P9 Form, you need to have with you some three key requirements. Below are the requirements that you need to have before you can begin filing your annual KRA Returns.

·         KRA PIN Number

·         iTax Password

·         KRA P9 Form

Now, let us break down the above three requirements needed in the process of filing KRA Returns using P9 Form. 

·         KRA PIN Number

The KRA PIN Number is the most important thing that you need to have before filing your KRA Returns. 

·         iTax Password

This is the password associated with your KRA PIN Number. With your KRA iTax Password, you can be able to log into your iTax account and file returns.

·         KRA P9 Form

This is a tax deduction form that shows you the Gross Pay, Taxable Pay, PAYE and Personal Relief for the whole year. 

How to File KRA Returns using P9 Form

In this blog post, we are going to use p9 Form for an employee under the civil service. Note also that the P9 Form that we are using in this example contains data for 10 months. Normally the P9 Form will contain data for 12 months, but that depends on the deductions and date of employment. 

Sample KRA P9 Form Used for Filing KRA Returns on iTax Portal

 

Step 1: Visit KRA iTax Web Portal using itax.kra.go.ke

Step 2: iTax iPage Dashboard

Once you have successfully logged into your iTax account you should see the following as shown above. In your iTax account you can do a variety of tasks online. Our main focus for this blog post will be on KRA Returns using KRA P9 Form.

Step 3: Click on Returns tab

Click on the Returns tab and then click File Return tab from the drop down menu appearing as show above. 

Step 4: Select Tax Obligation

Here, you are required to select the tax obligation. In this case, we select Income Tax – Resident Individual since we are filing KRA Returns for Kenyan resident with employment income. 

Step 5: Download Income Tax Resident Individual Form

 

 

Here, you will need to download the Income Tax Resident Individual Form (Excel). Note that this is a Zipped folder that you will need to Unzip. You can also download it using the provided link below: 

 

Step 6: Open the IT1 Individual Resident Return XLS (Excel) Form

 

By default Macros on the Excel sheet in Microsoft Excel 2007 is disabled, so you will need to enable Macros on the Excel sheet. If you are using a higher version of Microsoft Office such as Office 2010, it should open easily without asking you anything about enabling Macros.

Another issue that you may experience with the KRA Income Tax Resident Individual Form (Excel) if you are using Microsoft Office 2007, you might be required to download an add-on to enable the KRA Excel Sheet open. 

Once you have successfully enable Macros, the Income Tax Resident Individual Tax Return Excel form should open with ease and allow you input the figures on it with ease. 

Step 8: Fill in the required tabs

The tabs that you will be required to fill on the excel sheet includes the following:

·         Basic Info

·         Employment Income

·         Details of PAYE Deducted

·         Tax Computation

Note: If you have Withholding Tax (WHT) Credits, then you will need to declare the same on the excel sheet. In our case, we do not have any WHT. 

USING THIS P9

A. Fill in the Basic Info (Section A Part 1 – Return Information)

 

 

B. Fill in the Employment Income (Section F – Details of Employment {Self})

 

In this section, you need to provide PIN of Employer, Name of Employer and Gross Pay. The other fields just write 0.00 and proceed. 

C. Details of PAYE Deducted (Section M – Details of PAYE Deducted at Source from Salary {Self})

 

 

In this section, you need to provide PIN of Employer, Name of Employer, Taxable Salary and Amount of Tax Deducted (PAYE).

D. Tax Computation (Section T – Tax Computation)

 

 

In this last section, you enter the Personal Relief. In our case since the date was for 10 months we enter the personal relief that is displayed on our KRA P9 Form i.e. KHS. 12,800. Note that the personal relief for the year 2018 is KHS. 16,896. 

A negative figure in your KRA Return means that you are due for a refund from KRA. (You will be required to enter banking details if you find a negative figure).

A positive figure in your KRA Return means that you owe KRA. 

Once done, click on the Validate button to validate the data on the Income Tax Resident Individual Excel sheet. 

Step 9: Upload Income Tax Resident Individual Excel Form 

 

Once you have uploaded the Income Tax Resident Individual KRA Returns Excel form, click on the submit button. 

Step 10: Print KRA eReturn Acknowledgement Receipt 

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 HOW TO FILE NIL RETURNS

Learn How To File KRA Nil Returns using KRA iTax Portal today. Get to know how to file KRA Nil Returns quickly and easily using iTax Portal.

It is that time of the year whereby each Kenyan taxpayer is in a rush to file his or her KRA Returns on iTax Portal. So whether Employed or Unemployed, everyone is making sure that they file their Returns for the previous year before the 30th June Deadline.

So, In this article, I am going to share with you the steps that you need to take incase you need to file your KRA Nil Returns on iTax Portal. This article will be of great benefit to those who are unemployed or sometimes referred to as students. If you are in employment, you can check out how above👆👆

Before we get deeper into looking at How To File KRA Nil Returns Using KRA iTax Portal , we need to understand some basic terms here. We need to understand what is meant by KRA Nil Returns in terms of taxpayers and KRA iTax Portal.

You need to take note and understand that any Kenyan with a kra pin is supposed to file his or her iTax Returns on or before the deadline. So, whether you are employed or unemployed, as long as you have a kra pin number, filing KRA Returns is a must and failure to do so means that you will receive a penalty from Kenya Revenue Authority (KRA).

Any person who has an active KRA PIN Number and does not have any income is supposed to file his or her KRA Nil Returns between 1st January and 30th June of each year. So, you need to forget about the old notion that KRA Returns is for those who are employed, but rather any Kenyan with an active KRA PIN is supposed to be filing KRA Returns each year

What Is KRA Nil Returns?

KRA Nil Returns is a type of Income Tax Return which is filed by taxpayers who have an active KRA PIN Number but do not have any source of income. Source of income in this context means that they do not have any income that is either derived from Business, Employment or Rental.

So, if you dont have a source of Income such as Employment Income, Rental Income or Business Income, (KRA) states that you should file KRA Nil Returns using KRA iTax Portal on or before the 30th June Deadline. 

The group of taxpayers who file KRA Nil Returns is sometimes referred to as the unemployed or students. So, if you know you have an active kra that is already on iTax Portal, you need to ensure that you file your KRA Returns on or before the 30th June deadline that is set by Kenya Revenue Authority (KRA). There are nor extensions in KRA Returns period. 

Now that we have defined what we mean by KRA Nil Returns above, we need to look at two key questions that most taxpayers have pertaining to KRA Nil Returns on iTax Portal. This includes: Who Is Supposed To File KRA Nil Returns and What Is The Penalty For Not Filing KRA Nil Returns.

·         Who Is Supposed To File KRA Nil Returns

·         What Is The Penalty For Not Filing KRA Nil Returns

By looking and addressing the above two key questions pertaining to KRA Nil Returns on iTax Portal, we shall be able to lay a strong foundation on the understanding of filing KRA Nil Returns on KRA iTax Portal.

Who Is Supposed To File KRA Nil Returns?

I think this is the most asked question by many taxpayers in Kenya about KRA Nil Returns. The answer to this question normally goes down to any taxpayer who has an active KRA PIN Number but dont have a source of income. Those who are supposed to file KRA Nil Returns includes:

·         Students

·         Unemployed

So, incase you know that you have an active KRA PIN Number that is active on iTax Portal and at the same time you dont have a source of income either Business, Employment or Rental, then you fall in the category of taxpayers in Kenya who need to file KRA Nil Returns on iTax Portal.

It’s obvious you might be a student or an unemployed person, but with an active KRA PIN. You should always ensure that you file your Nil Returns before the 30th June deadline as set by Kenya Revenue Authority (KRA).

What Is The Penalty For Not Filing KRA Nil Returns?

Failure to file any KRA Returns on or before the 30th June Deadline leads to automatic penalty being imposed by Kenya Revenue Authority (KRA) on the taxpayer. The same applies to KRA Nil Returns. Any taxpayer who fails to file their KRA Nil Returns before the 30th June deadline will have a penalty of Kshs. 2,000.00 imposed on them by KRA.

In these tough economic times in Kenya, dishing out Kshs. 2,000.00 to pay for penalties for not filing KRA Returns on time is quite absurd. So, you should stop your ignorance and file your Nil Returns and don’t be a person who follows what the crowd says about no need to file Returns because the Government misuses taxes or Taxes are stolen by corrupt leaders.

Remember filing your Nil Returns lie before you and the Kshs. 2,000.00 penalty. If I were you, I would ensure that I file the KRA Nil Returns at this moment and no need to wait for the last minute rush as it is part of the Kenyan tradition to do things at the last minute.

You never know, iTax Portal might on the last day have server and systems issue which can make you fail to file your KRA Nil Returns, and then you will end up blaming KRA for no good reasons yet you had a whooping 6 months (180 days) to file your KRA Returns on iTax Portal.

Now that we have addressed the two key questions pertaining to KRA Nil Returns, we now need to look at the Requirements needed to file KRA Nil Returns on iTax Portal. These requirements are not that many but only 2. That is KRA PIN Number and KRA iTax Password.

Requirements Needed For Filing KRA Nil Returns

For you to able to file your KRA Nil Returns on KRA iTax Web Portal, you need to ensure that you have with you two key requirements i.e KRA PIN Number and KRA iTax Password. We are going to look at each of these KRA Nil Returns requirements in brief details below.

·         KRA PIN Number

KRA NUMBER is the most important requirement that you need to have with you. If by any chance you have forgotten or you don’t remember you KRA PIN, you can submit KRA PIN RETRIVAL and our team of experts will be able to assist with with PIN RETRIVAL request.

·         KRA iTax Password

The next requirement that you need to have with you is your KRA password You will need the iTax Password to access your KRA iTax Account. If you don’t know or have forgotten your iTax Password, you can reset it on the portal

Once you have ensured that you have with you the above two key requirements that are needed in the process of filing KRA Nil Returns on iTax Portal, we can now start the process of looking at How To File KRA Nil Returns Using KRA iTax Portal .

Steps Involved In Filing KRA Nil Returns

Step 1: Visit KRA Portal

The first step that you need to take is to ensure that you visit the ITAX WEB PORTAL using the link provided above in the above description. Note, the above is an external link that will take you to the KRA iTax Portal.

Step 2: Enter Your KRA PIN Number In the PIN/User ID Section

In this step, you will need to enter your KRA PIN NUMBER 

 

Step 3: Enter KRA iTax Password and Solve Arithmetic Question (Security Stamp)

In this step, you will be required to enter your KRA iTax Password and also solve the arithmetic question (security stamp). If you have forgotten your ITAX PASSWORD, you can check our article on HOW TO RESET KRA PIN A new password will be sent to your email and you can use it to login. Once you have entered your iTax Password, click on the “Login” button to access your iTax Account.

 

Step 4: KRA iTax Web Portal Account Dashboard

Once you have entered the correct ITAX PASSWORD and solved the arithmetic question (security stamp) as illustrated in Step 3 above, you will be logged in successfully and be able to see and access your KRA iTax Web Portal Account Dashboard. Here upon successful login process, you are able to view a wide range of iTax Portal functionalities.

 

 

Step 5: Click On The Returns Menu Tab Followed By File Nil Return

In this step, on the iTax Account menu list, navigate to “Returns” menu tab and click on “File Nil Return” from the drop down menu list. This is as illustrated in the screenshot below.

 

 

Step 6: Select Tax Obligation As Income Tax Resident Individual

In the Nil e-Return Form, under the Tax Obligation part, select Income Tax Resident Individual since we are filing KRA Nil Return for a Resident Individual. The other two fields i.e Type and Taxpayer are automatically pre-filled by the system.

 

Step 7: Fill In The Income Tax Resident Individual Nil e-Return Form

In this step, on the KRA Nil e-Return Form, you need to select the date for the Return Period From part. Since we are in 2020, we are filing KRA Nil Returns for 2021. So the Return Period From date will be 01/01/2021 and the Return Period To date will be automatically pre-filled by the system to 31/12/2021.

 

Once you have entered the returns dates 01/01/2021 – 31/12/2021, click on the “Submit” button to submit the KRA Nil Return to Kenya Revenue Authority (KRA). A pop up notification from itax.kra.go.ke will appear as shown below:

The popup message simply states: “Dear taxpayer, filing of Nil Returns is only applicable in cases where you have no transactions to declare for the period. Are you sure you want file Nil Return? Since that is what we are filing here, click on the “Yes” button.

Step 8: Download KRA Nil Returns Receipt

In this last step, you will need to download the KRA Nil Return Receipt that has been generated by the iTax system successfully. This is a final confirming that your KRA Nil Return has been successfully submitted to Kenya Revenue Authority (KRA). An Acknowledgement Number will also be generated for that KRA Nil Return that we have just filed.