A Guide to Filing Individual KRA Tax Returns in Kenya

Table of Contents

Filing Individual KRA Tax Returns in Kenya

Introduction

There are two main tax types in Kenya. They are individual and non-individual. Under each type, there are many categories and obligations. For the sake of this blog, we focus on income tax (the default tax obligation for all KRA Pin holders). This is for both the employed and unemployed and should not be confused to be for those in active employment only.

While filing returns, those with employment/income are required to File Returns (ITR) while those with no employment/income are supposed to File Nil Returns. This is on annual basis on or before 30th June (the end of national financial year). We usually file taxes for the preceding year, so if you are filing in 2024, the return period is 2023. However, if you failed for other previous years, you will need to file them first (late filing) before proceeding.

Who

Any individual having clocked 18 years of age within the borders of Kenya is required to have a personal KRA Pin. This might include non-Kenyans residing within the republic. However, not all in that bracket are holders of the same due to a number of reasons including lack of sensitization, ignorance, reluctance among others.

Why

Any holder of KRA Pin is obligated to declare their income. This is actualized by filing returns to confirm the same. Failure to file taxes in time attracts a penalty currently capped at Kshs. 2,000.

Failure to declare income and tax evasion attract more serious legal consequences that can include fines and imprisonment.

Where

Filing of taxes is done online on the i-Tax portal. To access this, you need your Pin and the password set during registration. A number of individuals usually forget their passwords. To remedy that, KRA provides an easy way to reset lost passwords. It is usually key to keep the email used when creating KRA Pin as this is where the reset passwords are set and is the main communication channel with KRA.

How

Step 1

You need to have your P9 with you if you are employed/have income.

Step 2

Hover your cursor over the Returns Tab and a list of options will appear.

The first File Return will redirect you to a page where you will download an offline compressed Excel Sheet or ODS and it is usable by those employed at any period in the preceding gear.

The second File Amended Return is for those who made mistakes while filing and would like to make changes and it will redirect you to download an offline compressed Excel Sheet or ODS.

The third View Filed Return is used to view previously filed returns and can help in confirmation incase one is not sure if they have filed or not.

The fourth File Nil Return is for those with no income in the preceding year/tax period is done strictly online.

The fifth ITR for Employment Income Only is for those who had income in the preceding year and is precisely convenient for those working in government sector. It is done only and provides a timely comparison with details provided by employer.

The last one Download PAYE CSV is for use by employers to declare employees income data and should not bother you much.

Step 3

The simplest is File Nil Returns. If you click on it you will be redirected to the next page. With other fields auto-populated, choose Income Tax Resident for Tax Obligation Section. Click next to proceed. Enter Return Period From to 01/01/YR where YR is the year you are filing for and Return Period to 31/12/YR. Proceed to submit.

The Return Period From can fail to be 01/01/YR if the taxpayer created their KRA Pin during the preceding year beyond first in which case it becomes the date the KRA Pin was created.

For File Return, choose Tax Obligation as Income Tax Resident, download Excel/ODS, open the Excel/ODS you downloaded, and ensure you enable editing and content/macros. With the guide of your P9, fill all the necessary sections accurately. At the end when you are done filling, click complete and a zip file will be generate offline. Go back to iTax portal, fill the tax period, upload the zip file and submit.

ITR for Employment Income Only is more or less the same as File Return only that it is done online. Your P9 will guide you to fill the necessary sections and ensure accuracy. At the end ensure you submit.

Step 4

Download the receipt that you are issued and you are good to go.

Conclusion

If you find any difficulty in filing your taxes, you can reach out to us for advise or assistance.